(Exact name of registrant as specified in its charter) | |||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
(Address of principal executive offices) | (Zip Code) | ||||
(Registrant’s telephone number, including area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: | ||
Title of each class | Outstanding at May 4, 2020 | |
Class A Common Stock, without par value | ||
Class B Common Stock, without par value |
PART I. | FINANCIAL INFORMATION | |
Item 1. | Financial Statements (Unaudited) | |
Consolidated Balance Sheets | ||
Consolidated Statements of Operations | ||
Consolidated Statements of Comprehensive Income (Loss) | ||
Consolidated Statements of Changes in Stockholders’ Equity | ||
Consolidated Statements of Cash Flows | ||
Notes to Consolidated Financial Statements | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
PART II. | OTHER INFORMATION | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 6. | Exhibits | |
SIGNATURES |
March 31, 2020 | December 31, 2019 | ||||||
Assets | |||||||
Investments: | |||||||
Fixed maturities - available for sale, at fair value (amortized cost 2020 - $7,115,265, 2019 - $7,015,269; and allowance for credit losses 2020 - $12,146, 2019 - $0) | $ | $ | |||||
Equity securities at fair value (cost: 2020 - $96,882, 2019 - $95,269) | |||||||
Mortgage loans (net of allowance for credit losses 2020 - $3,279, 2019 - $0) | |||||||
Real estate | |||||||
Policy loans | |||||||
Short-term investments | |||||||
Other investments | |||||||
Total investments | |||||||
Cash and cash equivalents | |||||||
Securities and indebtedness of related parties | |||||||
Accrued investment income | |||||||
Amounts receivable from affiliates | |||||||
Reinsurance recoverable | |||||||
Deferred acquisition costs | |||||||
Value of insurance in force acquired | |||||||
Current income taxes recoverable | |||||||
Other assets | |||||||
Assets held in separate accounts | |||||||
Total assets | $ | $ |
March 31, 2020 | December 31, 2019 | ||||||
Liabilities and stockholders’ equity | |||||||
Liabilities: | |||||||
Future policy benefits: | |||||||
Interest sensitive products | $ | $ | |||||
Traditional life insurance and accident and health products | |||||||
Other policy claims and benefits | |||||||
Supplementary contracts without life contingencies | |||||||
Advance premiums and other deposits | |||||||
Amounts payable to affiliates | |||||||
Short-term debt | |||||||
Long-term debt | |||||||
Deferred income taxes | |||||||
Other liabilities | |||||||
Liabilities related to separate accounts | |||||||
Total liabilities | |||||||
Stockholders’ equity: | |||||||
FBL Financial Group, Inc. stockholders’ equity: | |||||||
Preferred stock, without par value, at liquidation value - authorized 10,000,000 shares, issued and outstanding 5,000,000 Series B shares | |||||||
Class A common stock, without par value - authorized 88,500,000 shares, issued and outstanding 24,630,777 shares in 2020 and 24,652,802 shares in 2019 | |||||||
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 11,413 shares in 2020 and 2019 | |||||||
Accumulated other comprehensive income | |||||||
Retained earnings | |||||||
Total FBL Financial Group, Inc. stockholders’ equity | |||||||
Noncontrolling interest | |||||||
Total stockholders’ equity | |||||||
Total liabilities and stockholders’ equity | $ | $ |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Revenues: | |||||||
Interest sensitive product charges | $ | $ | |||||
Traditional life insurance premiums | |||||||
Net investment income | |||||||
Net realized capital gains (losses) | ( | ) | |||||
Change in allowance for credit losses on investments | ( | ) | |||||
Other-than-temporary impairment losses | ( | ) | |||||
Other income | |||||||
Total revenues | |||||||
Benefits and expenses: | |||||||
Interest sensitive product benefits | |||||||
Traditional life insurance benefits | |||||||
Policyholder dividends | |||||||
Underwriting, acquisition and insurance expenses | |||||||
Interest expense | |||||||
Other expenses | |||||||
Total benefits and expenses | |||||||
( | ) | ||||||
Income tax benefit (expense) | ( | ) | |||||
Equity income, net of related income taxes | |||||||
Net income (loss) | ( | ) | |||||
Net (income) loss attributable to noncontrolling interest | ( | ) | |||||
Net income (loss) attributable to FBL Financial Group, Inc. | $ | ( | ) | $ | |||
Earnings (loss) per common share | $ | ( | ) | $ | |||
Earnings (loss) per common share - assuming dilution | $ | ( | ) | $ |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Net income (loss) | $ | ( | ) | $ | |||
Other comprehensive income (loss) (1) | |||||||
Change in net unrealized investment gains/losses | ( | ) | |||||
Change in underfunded status of postretirement benefit plans | |||||||
Total other comprehensive income (loss), net of tax | ( | ) | |||||
Total comprehensive income (loss), net of tax | ( | ) | |||||
Comprehensive (income) loss attributable to noncontrolling interest | ( | ) | |||||
Total comprehensive income (loss) applicable to FBL Financial Group, Inc. | $ | ( | ) | $ |
(1) | Other comprehensive income (loss) is recorded net of deferred income taxes and other adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities. |
FBL Financial Group, Inc. Stockholders’ Equity | |||||||||||||||||||||||
Series B Preferred Stock | Class A and Class B Common Stock | Accumulated Other Comprehensive Income | Retained Earnings | Non- controlling Interest | Total Stockholders’ Equity | ||||||||||||||||||
Balance at January 1, 2019 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Cumulative effect of change in accounting principle related to leases | — | — | — | — | |||||||||||||||||||
Net income - three months ended March 31, 2019 | — | — | — | ||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||
Purchase of common stock | — | ( | ) | — | ( | ) | — | ( | ) | ||||||||||||||
Dividends on preferred stock | — | — | — | ( | ) | — | ( | ) | |||||||||||||||
Dividends on common stock | — | — | — | ( | ) | — | ( | ) | |||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Balance at January 1, 2020 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Cumulative effect of change in accounting principle related to current expected credit loss | — | — | — | ( | ) | — | ( | ) | |||||||||||||||
Net loss - three months ended March 31, 2020 | — | — | — | ( | ) | ( | ) | ( | ) | ||||||||||||||
Other comprehensive loss | — | — | ( | ) | — | — | ( | ) | |||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||
Purchase of common stock | — | ( | ) | — | ( | ) | — | ( | ) | ||||||||||||||
Dividends on preferred stock | — | — | — | ( | ) | — | ( | ) | |||||||||||||||
Dividends on common stock | — | — | — | ( | ) | — | ( | ) | |||||||||||||||
Disbursements related to noncontrolling interest | — | — | — | — | ( | ) | ( | ) | |||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | $ | $ |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Operating activities | |||||||
Net income (loss) | $ | ( | ) | $ | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Interest credited to account balances | |||||||
Charges for mortality, surrenders and administration | ( | ) | ( | ) | |||
Net realized (gains) losses on investments | ( | ) | |||||
Change in fair value of derivatives | ( | ) | |||||
Increase in liabilities for life insurance and other future policy benefits | |||||||
Deferral of acquisition costs | ( | ) | ( | ) | |||
Amortization of deferred acquisition costs and value of insurance in force | |||||||
Change in reinsurance recoverable | ( | ) | |||||
Provision for deferred income taxes | ( | ) | |||||
Other | ( | ) | ( | ) | |||
Net cash provided by operating activities | |||||||
Investing activities | |||||||
Sales, maturities or repayments: | |||||||
Fixed maturities - available for sale | |||||||
Equity securities | |||||||
Mortgage loans | |||||||
Derivative instruments | |||||||
Policy loans | |||||||
Securities and indebtedness of related parties | |||||||
Other investments | |||||||
Acquisitions: | |||||||
Fixed maturities - available for sale | ( | ) | ( | ) | |||
Equity securities | ( | ) | ( | ) | |||
Mortgage loans | ( | ) | ( | ) | |||
Derivative instruments | ( | ) | ( | ) | |||
Policy loans | ( | ) | ( | ) | |||
Securities and indebtedness of related parties | ( | ) | ( | ) | |||
Other long-term investments | ( | ) | ( | ) | |||
Short-term investments, net change | ( | ) | |||||
Purchases and disposals of property and equipment, net | ( | ) | ( | ) | |||
Net cash provided by (used in) investing activities | ( | ) |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Financing activities | |||||||
Contract holder account deposits | $ | $ | |||||
Contract holder account withdrawals | ( | ) | ( | ) | |||
Dividends paid | ( | ) | ( | ) | |||
Proceeds from issuance of short-term debt | |||||||
Issuance or repurchase of common stock, net | ( | ) | ( | ) | |||
Other financing activities | ( | ) | |||||
Net cash provided by (used in) financing activities | ( | ) | |||||
Increase (decrease) in cash and cash equivalents | ( | ) | |||||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | $ | $ | |||||
Supplemental disclosures of cash flow information | |||||||
Cash (paid) received during the period for: | |||||||
Interest | $ | ( | ) | $ | ( | ) | |
Income taxes | ( | ) |
Description | Date of adoption | Effect on our consolidated financial statements or other significant matters |
Standards adopted: | ||
Leases In February 2016, the FASB issued a new lease accounting standard, which, for most lessees, results in a gross-up of the balance sheet. Under the new standard, lessees recognize the leased assets on the balance sheet and recognize a corresponding liability for the present value of lease payments over the lease term. The new standard requires the application of judgment and estimates. Also, there are accounting policy elections that may be taken both at transition and for the accounting post-transition, including whether to adopt a short-term lease recognition exemption. | January 1, 2019 | Upon adoption using the modified retrospective approach, a cumulative effect adjustment of $0.6 million was recorded to retained earnings, representing the elimination of a deferred gain on a sale-leaseback transaction, and both other assets and other liabilities increased by $7.2 million. We elected the practical expedients provided for under the guidance but did not use hindsight in determining lease term. We have no finance leases and have elected to treat leases with terms of twelve months or less as short-term leases. |
Description | Date of adoption | Effect on our consolidated financial statements or other significant matters |
Standards adopted: | ||
Financial instruments - credit impairment In June 2016, the FASB issued guidance amending the accounting for the credit impairment of certain financial instruments. Under the new guidance, credit losses are estimated using an expected loss model under which an allowance for credit losses is established and reflected as a charge to earnings. The allowance is based on the probability of loss over the life of the instrument, considering historical, current and forecast information. The new guidance differs significantly from the incurred loss model used historically, and results in the earlier recognition of credit losses. The new guidance may increase the volatility of earnings to the extent the assumptions used in estimating the allowance are revised as changes in the allowance will be reflected in earnings. Our available-for-sale fixed maturities will continue to apply the incurred loss model; however, such losses will also be in the form of an allowance for credit losses rather than an adjustment to the cost basis of the security. The new guidance permits entities to recognize improvements in credit loss estimates on fixed maturity available-for-sale securities by reducing the allowance account immediately through earnings. | January 1, 2020 | Upon adoption using the modified retrospective approach, a cumulative effect adjustment of $2.7 million after offsets was recorded to retained earnings as of the first reporting period in which the new guidance was effective. The cumulative effect adjustment arose from the establishment of an allowance for credit losses on our mortgage loan investments totaling $3.1 million and reinsurance recoverable totaling $0.9 million, before offsets. See the discussion that follows for further information. Application of this guidance resulted in a decrease to net income of $0.1 million (less than $0.01 per basic and diluted share) for the quarter ended March 31, 2020. Prior periods were not restated. |
Standards not yet adopted: | ||
Targeted improvements: long-duration contracts In August 2018, the FASB issued guidance that will change the accounting for long-duration insurance contracts. The new guidance impacts several facets of the accounting for such contracts including the accounting for future policy benefits associated with traditional non-participating and limited payment insurance contracts as well as for guaranteed minimum benefits and the amortization model used for deferred acquisition costs. Disclosures as well as presentation of financial results will also change under the new guidance. | January 1, 2022 | We are currently evaluating the impact of this guidance on our consolidated financial statements but expect the impact to the timing of profit emergence for the impacted insurance contracts to be significant. Adoption of certain portions of the guidance may be applied on a modified retrospective basis and others on a full retrospective basis. |
Allowance on Reinsurance Recoverables | |||
Three months ended March 31, 2020 | |||
(Dollars in thousands) | |||
Beginning balance of the allowance for credit losses | $ | ||
Change in allowance for credit losses | |||
Ending balance of the allowance for credit losses | $ |
Available-For-Sale Fixed Maturity Securities by Investment Category | |||||||||||||||||||
March 31, 2020 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains (1) | Gross Unrealized Losses (1) | Allowance for Credit Losses | Fair Value | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Fixed maturities: | |||||||||||||||||||
Corporate | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
Residential mortgage-backed | ( | ) | |||||||||||||||||
Commercial mortgage-backed | ( | ) | |||||||||||||||||
Other asset-backed | ( | ) | |||||||||||||||||
United States Government and agencies | |||||||||||||||||||
States and political subdivisions | ( | ) | |||||||||||||||||
Total fixed maturities | $ | $ | $ | ( | ) | $ | ( | ) | $ |
December 31, 2019 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains (1) | Gross Unrealized Losses (1) | Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Fixed maturities: | |||||||||||||||
Corporate | $ | $ | $ | ( | ) | $ | |||||||||
Residential mortgage-backed | ( | ) | |||||||||||||
Commercial mortgage-backed | ( | ) | |||||||||||||
Other asset-backed | ( | ) | |||||||||||||
United States Government and agencies | ( | ) | |||||||||||||
States and political subdivisions | ( | ) | |||||||||||||
Total fixed maturities | $ | $ | $ | ( | ) | $ |
(1) | Includes $ |
Available-For-Sale Fixed Maturities by Maturity Date | |||||||
March 31, 2020 | |||||||
Amortized Cost | Fair Value | ||||||
(Dollars in thousands) | |||||||
Due in one year or less | $ | $ | |||||
Due after one year through five years | |||||||
Due after five years through ten years | |||||||
Due after ten years | |||||||
Mortgage-backed and other asset-backed | |||||||
Total fixed maturities | $ | $ |
Net Unrealized Gains on Investments in Accumulated Other Comprehensive Income | |||||||
March 31, 2020 | December 31, 2019 | ||||||
(Dollars in thousands) | |||||||
Net unrealized appreciation on: | |||||||
Fixed maturities - available for sale | $ | $ | |||||
Adjustments for assumed changes in amortization pattern of: | |||||||
Deferred acquisition costs | ( | ) | ( | ) | |||
Value of insurance in force acquired | ( | ) | ( | ) | |||
Unearned revenue reserve | |||||||
Adjustments for assumed changes in policyholder liabilities | ( | ) | ( | ) | |||
Provision for deferred income taxes | ( | ) | ( | ) | |||
Net unrealized investment gains | $ | $ |
Fixed Maturity Securities with Unrealized Losses by Length of Time without an Allowance for Credit Losses | |||||||||||||||||||||||||||
March 31, 2020 | |||||||||||||||||||||||||||
Less than one year | One year or more | Total | |||||||||||||||||||||||||
Description of Securities | Fair Value | Unrealized Losses (1) | Fair Value | Unrealized Losses (1) | Fair Value | Unrealized Losses (1) | Percent of Total | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||
Corporate | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | % | ||||||||||||||
Residential mortgage-backed | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Commercial mortgage-backed | ( | ) | ( | ) | |||||||||||||||||||||||
Other asset-backed | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
States and political subdivisions | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Total fixed maturities | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | % |
Fixed Maturity Securities with Unrealized Losses by Length of Time | |||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||
Less than one year | One year or more | Total | |||||||||||||||||||||||||
Description of Securities | Fair Value | Unrealized Losses (1) | Fair Value | Unrealized Losses (1) | Fair Value | Unrealized Losses (1) | Percent of Total | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||
Corporate | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | % | ||||||||||||||
Residential mortgage-backed | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Commercial mortgage-backed | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Other asset-backed | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
United States Government and agencies | ( | ) | ( | ) | |||||||||||||||||||||||
States and political subdivisions | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Total fixed maturities | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | % |
(1) | Non-credit losses reported in AOCI are included with gross unrealized losses resulting in total gross unrealized losses for fixed maturities, available-for-sale being reported in the table. |
Available-For-Sale Fixed Maturities Allowance for Credit Losses | |||
Three months ended March 31, 2020 | |||
(Dollars in thousands) | |||
Corporate securities: | |||
Beginning balance of the allowance for credit losses | $ | ||
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | |||
Ending balance of the allowance for credit losses | $ |
Mortgage Loans by Collateral Type | ||||||||||||||
March 31, 2020 | December 31, 2019 | |||||||||||||
Collateral Type | Amortized Cost | Percent of Total | Amortized Cost | Percent of Total | ||||||||||
(Dollars in thousands) | ||||||||||||||
Office | $ | % | $ | % | ||||||||||
Retail | ||||||||||||||
Industrial | ||||||||||||||
Apartment | ||||||||||||||
Other | ||||||||||||||
Total | $ | % | $ | % |
Mortgage Loans by Geographic Location within the United States | ||||||||||||||
March 31, 2020 | December 31, 2019 | |||||||||||||
Region of the United States | Amortized Cost | Percent of Total | Amortized Cost | Percent of Total | ||||||||||
(Dollars in thousands) | ||||||||||||||
South Atlantic | $ | % | $ | % | ||||||||||
Pacific | ||||||||||||||
East North Central | ||||||||||||||
West North Central | ||||||||||||||
Mountain | ||||||||||||||
East South Central | ||||||||||||||
West South Central | ||||||||||||||
Middle Atlantic | ||||||||||||||
New England | ||||||||||||||
Total | $ | % | $ | % |
Mortgage Loans by Loan-to-Value Ratio | ||||||||||||||
March 31, 2020 | December 31, 2019 | |||||||||||||
Loan-to-Value Ratio | Amortized Cost | Percent of Total | Amortized Cost | Percent of Total | ||||||||||
(Dollars in thousands) | ||||||||||||||
0% - 50% | $ | % | $ | % | ||||||||||
51% - 60% | ||||||||||||||
61% - 70% | ||||||||||||||
71% - 80% | ||||||||||||||
Total | $ | % | $ | % |
Mortgage Loans by Internal Rating and Year of Origination | ||||||||||||||||||||||||||||
March 31, 2020 | ||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015 & prior | Total | ||||||||||||||||||||||
Internal Rating | Amortized Cost | |||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
A | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
B | — | — | — | — | — | |||||||||||||||||||||||
C | — | — | — | — | — | |||||||||||||||||||||||
W | — | — | — | — | — | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
December 31, 2019 | ||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | 2014 & prior | Total | ||||||||||||||||||||||
Internal Rating | Amortized Cost | |||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
A | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
B | — | — | — | — | — | |||||||||||||||||||||||
C | — | — | — | — | — | |||||||||||||||||||||||
W | — | — | — | — | — | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
Allowance for Credit Losses on Mortgage Loans | |||
Three months ended March 31, 2020 | |||
(Dollars in thousands) | |||
Beginning balance of the allowance for credit losses | $ | ||
Current period provision for expected credit losses | |||
Ending balance of the allowance for credit losses | $ |
Realized Gains (Losses) - Recorded in Income | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands) | |||||||
Realized gains (losses) on investments | |||||||
Fixed maturities: | |||||||
Gross gains | $ | $ | |||||
Gross losses | ( | ) | |||||
Mortgage loans | |||||||
Other | ( | ) | ( | ) | |||
( | ) | ||||||
Net gains (losses) recognized during the period on equity securities held at the end of the period | ( | ) | |||||
Net gains and (losses) recognized during the period on equity securities sold during the period | ( | ) | ( | ) | |||
Net gains (losses) recognized during the period on equity securities | ( | ) | |||||
Net realized gains (losses) | ( | ) | |||||
Credit losses recognized in earnings: | |||||||
Other-than-temporary impairment losses | ( | ) | |||||
Fixed maturity allowance for credit losses | ( | ) | |||||
Mortgage loan allowance for credit losses | ( | ) | |||||
Net realized gains (losses) on investments recorded in income | $ | ( | ) | $ |
VIE Investments by Category | |||||||||||||||
March 31, 2020 | December 31, 2019 | ||||||||||||||
Carrying Value | Maximum Exposure to Loss | Carrying Value | Maximum Exposure to Loss | ||||||||||||
(Dollars in thousands) | |||||||||||||||
LIHTC investments | $ | $ | $ | $ | |||||||||||
Investment companies | |||||||||||||||
Real estate limited partnerships | |||||||||||||||
Other | |||||||||||||||
Total | $ | $ | $ | $ |
Derivatives Instruments by Type | |||||||
March 31, 2020 | December 31, 2019 | ||||||
(Dollars in thousands) | |||||||
Assets | |||||||
Freestanding derivatives: | |||||||
Call options (reported in other investments) | $ | $ | |||||
Embedded derivatives: | |||||||
Modified coinsurance (reported in reinsurance recoverable - assumed) | |||||||
Modified coinsurance (reported in reinsurance recoverable - ceded) | |||||||
Interest-only security (reported in fixed maturities) | |||||||
Total assets | $ | $ | |||||
Liabilities | |||||||
Embedded derivatives: | |||||||
Indexed products (reported in liability for future policy benefits) | $ | $ | |||||
Modified coinsurance (reported in other liabilities) | |||||||
Total liabilities | $ | $ |
Derivative Income (Loss) | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands) | |||||||
Freestanding derivatives: | |||||||
Call options | $ | ( | ) | $ | |||
Embedded derivatives: | |||||||
Modified coinsurance | ( | ) | |||||
Interest-only security | |||||||
Indexed products | ( | ) | |||||
Total income (loss) from derivatives | $ | ( | ) | $ |
• | Level 1 - Fair values are based on unadjusted quoted prices in active markets for identical assets or liabilities. |
• | Level 2 - Fair values are based on inputs, other than quoted prices from active markets, that are observable for the asset or liability, either directly or indirectly. |
• | Level 3 - Fair values are based on significant unobservable inputs for the asset or liability. |
• | We follow a “pricing waterfall” policy, which establishes the pricing source preference for a particular security or security type. The order of preference is based on our evaluation of the valuation methods used, the source’s knowledge of the instrument and the reliability of the prices we have received from the source in the past. Our valuation policy dictates that fair values are initially sought from third-party pricing services. If our review of the prices received from our preferred source indicates an inaccurate price, we will use an alternative source within the waterfall and document the decision. In the event that fair values are not available from one of our external pricing services or upon review of the fair values provided it is determined that they may not be reflective of market conditions, those securities are submitted to brokers familiar with the security to obtain non-binding price quotes. Broker quotes tend to be used in limited circumstances such as for newly issued, private placement corporate bonds and other instruments that are not widely traded. For those securities for which an externally provided fair value is not available, we use cash flow modeling techniques to estimate fair value. |
• | We evaluate third-party pricing source estimation methodologies to assess whether they will provide a fair value that approximates a market exit price. |
• | We perform an overall analysis of portfolio fair value movement against general movements in interest rates and spreads. |
• | We compare period-to-period price trends to detect unexpected price fluctuations based on our knowledge of the market and the particular instrument. As fluctuations are noted, we will perform further research that may include discussions with the original pricing source or other external sources to ensure we agree with the valuation. |
• | We compare prices between different pricing sources for unusual disparity. |
• | We meet at least quarterly with our Investment Committee, the group that oversees our valuation process, to discuss valuation practices and observations during the pricing process. |
Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels | |||||||||||||||
March 31, 2020 | |||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets | |||||||||||||||
Fixed maturities: | |||||||||||||||
Corporate securities | $ | $ | $ | $ | |||||||||||
Residential mortgage-backed securities | |||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||
Other asset-backed securities | |||||||||||||||
United States Government and agencies | |||||||||||||||
States and political subdivisions | |||||||||||||||
Total fixed maturities | |||||||||||||||
Non-redeemable preferred stocks | |||||||||||||||
Common stocks (1) | |||||||||||||||
Other investments | |||||||||||||||
Cash, cash equivalents and short-term investments | |||||||||||||||
Reinsurance recoverable | |||||||||||||||
Assets held in separate accounts | |||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||
Liabilities | |||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | $ | $ | $ | |||||||||||
Other liabilities | |||||||||||||||
Total liabilities | $ | $ | $ | $ |
Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels | |||||||||||||||
December 31, 2019 | |||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets | |||||||||||||||
Fixed maturities: | |||||||||||||||
Corporate securities | $ | $ | $ | $ | |||||||||||
Residential mortgage-backed securities | |||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||
Other asset-backed securities | |||||||||||||||
United States Government and agencies | |||||||||||||||
States and political subdivisions | |||||||||||||||
Total fixed maturities | |||||||||||||||
Non-redeemable preferred stocks | |||||||||||||||
Common stocks (1) | |||||||||||||||
Other investments | |||||||||||||||
Cash, cash equivalents and short-term investments | |||||||||||||||
Reinsurance recoverable | |||||||||||||||
Assets held in separate accounts | |||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||
Liabilities | |||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | $ | $ | $ | |||||||||||
Other liabilities | |||||||||||||||
Total liabilities | $ | $ | $ | $ |
(1) | A private equity fund with a fair value estimate of $ |
Level 3 Assets by Valuation Source - Recurring Basis | |||||||||||
March 31, 2020 | |||||||||||
Third-party vendors | Priced internally | Fair Value | |||||||||
(Dollars in thousands) | |||||||||||
Corporate securities | $ | $ | $ | ||||||||
Commercial mortgage-backed securities | |||||||||||
Other asset-backed securities | |||||||||||
Non-redeemable preferred stocks | |||||||||||
Total assets | $ | $ | $ | ||||||||
Percent of total | % | % | % |
Level 3 Assets by Valuation Source - Recurring Basis | |||||||||||
December 31, 2019 | |||||||||||
Third-party vendors | Priced internally | Fair Value | |||||||||
(Dollars in thousands) | |||||||||||
Corporate securities | $ | $ | $ | ||||||||
Commercial mortgage-backed securities | |||||||||||
Other asset-backed securities | |||||||||||
Non-redeemable preferred stocks | |||||||||||
Total assets | $ | $ | $ | ||||||||
Percent of total | % | % | % |
Quantitative Information about Level 3 Fair Value Measurements - Recurring Basis | |||||||||
March 31, 2020 | |||||||||
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||
(Dollars in thousands) | |||||||||
Assets | |||||||||
Corporate securities | $ | Discounted cash flow | Credit spread | 2.00% - 10.75% (7.03%) | |||||
Commercial mortgage-backed securities | Discounted cash flow | Credit spread | 3.01% - 4.54% (3.93%) | ||||||
Non-redeemable preferred stocks | Discounted cash flow | Credit spread | 6.06% (6.06%) | ||||||
Total assets | $ | ||||||||
Liabilities | |||||||||
Future policy benefits - indexed product embedded derivatives | $ | Discounted cash flow | Credit risk Risk margin | 2.25% - 2.85% (2.50%) 0.15% - 0.40% (0.25%) |
December 31, 2019 | |||||||||
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||
(Dollars in thousands) | |||||||||
Assets | |||||||||
Corporate securities | $ | Discounted cash flow | Credit spread | 2.11% - 5.85% (4.33%) | |||||
Commercial mortgage-backed securities | Discounted cash flow | Credit spread | 1.18% - 2.22% (1.92%) | ||||||
Other asset-backed securities | Discounted cash flow | Credit spread | 2.15% - 2.30% (2.23%) | ||||||
Non-redeemable preferred stocks | Discounted cash flow | Credit spread | 2.72% (2.72%) | ||||||
Total assets | $ | ||||||||
Liabilities | |||||||||
Future policy benefits - indexed product embedded derivatives | $ | Discounted cash flow | Credit risk Risk margin | 0.40% - 1.35% (0.80%) 0.15% - 0.40% (0.25%) |
Level 3 Financial Instruments Changes in Fair Value - Recurring Basis | |||||||||||||||||||||||||||||||||||
March 31, 2020 | |||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses), net | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | Purchases | Disposals | Included in net income | Included in other compre-hensive income | Transfers into Level 3 | Transfers out of Level 3 (1) | Amort-ization included in net income | Balance, March 31, 2020 | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Corporate securities | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||
Commercial mortgage-backed securities | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Other asset-backed securities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Non-redeemable preferred stocks | ( | ) | |||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | $ | — | $ |
March 31, 2019 | |||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses), net | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | Purchases | Disposals | Included in net income | Included in other compre-hensive income | Transfers into Level 3 | Transfers out of Level 3 (1) | Amort-ization included in net income | Balance, March 31, 2019 | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Corporate securities | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Other asset-backed securities | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Non-redeemable preferred stocks | |||||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | $ | $ | ( | ) | $ | $ | $ | $ | $ | — | $ |
(1) | Transfers out of Level 3 include those assets that we are now able to obtain pricing from a third-party pricing vendor that uses observable inputs. The fair values of newly issued securities often require additional estimation until a market is created, which is generally within a few months after issuance. Once a market is created, as was the case for the majority of the security transfers out of the Level 3 category above, Level 2 valuation sources become available. |
Valuation of our Financial Instruments Not Reported at Fair Value by Hierarchy Levels | |||||||||||||||||||
March 31, 2020 | |||||||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair Value | Carrying Value | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Assets | |||||||||||||||||||
Mortgage loans | $ | $ | $ | $ | $ | ||||||||||||||
Policy loans | |||||||||||||||||||
Other investments | |||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ||||||||||||||
Liabilities | |||||||||||||||||||
Future policy benefits | $ | $ | $ | $ | $ | ||||||||||||||
Supplementary contracts without life contingencies | |||||||||||||||||||
Advance premiums and other deposits | |||||||||||||||||||
Short-term debt | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Liabilities related to separate accounts | |||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair Value | Carrying Value | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Assets | |||||||||||||||||||
Mortgage loans | $ | $ | $ | $ | $ | ||||||||||||||
Policy loans | |||||||||||||||||||
Other investments | |||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ||||||||||||||
Liabilities | |||||||||||||||||||
Future policy benefits | $ | $ | $ | $ | $ | ||||||||||||||
Supplementary contracts without life contingencies | |||||||||||||||||||
Advance premiums and other deposits | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Liabilities related to separate accounts | |||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ |
Components of Net Periodic Pension Cost for FBL and Affiliates Combined - Multiemployer Plan | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands) | |||||||
Service cost | $ | $ | |||||
Interest cost | |||||||
Expected return on assets | ( | ) | ( | ) | |||
Amortization of actuarial loss | |||||||
Net periodic pension cost | $ | $ | |||||
FBL Financial Group, Inc. share of net periodic pension costs | $ | $ |
Components of Net Periodic Pension Cost for FBL and Affiliates Combined - Other Plans | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands) | |||||||
Service cost | $ | $ | |||||
Interest cost | |||||||
Amortization of actuarial loss | |||||||
Net periodic pension cost | $ | $ | |||||
FBL Financial Group, Inc. share of net periodic pension costs | $ | $ |
Dividends | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
Class A and B common stock: | |||||||
Cash dividends per common share | $ | $ | |||||
Special cash dividend per common share | |||||||
Total common stock dividends per share | $ | $ | |||||
Series B preferred stock dividends per share | $ | $ |
Reconciliation of Outstanding Common Stock | ||||||||||||||||||||
Class A | Class B | Total | ||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Outstanding at January 1, 2019 | $ | $ | $ | |||||||||||||||||
Stock-based compensation | ||||||||||||||||||||
Purchase of common stock | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
Outstanding at March 31, 2019 | $ | $ | $ | |||||||||||||||||
Outstanding at January 1, 2020 | $ | $ | $ | |||||||||||||||||
Stock-based compensation | ||||||||||||||||||||
Purchase of common stock | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
Outstanding at March 31, 2020 | $ | $ | $ |
Accumulated Other Comprehensive Income, Net of Tax and Other Offsets | |||||||||||||||
Unrealized Net Investment Gains (Losses) on Fixed Maturities Available-for-Sale (1) | Underfunded Status of Postretirement Benefit Plans | ||||||||||||||
Without Non-Credit Impairment Losses | With Non-Credit Impairment Losses | Total | |||||||||||||
(Dollars in thousands) | |||||||||||||||
Balance at January 1, 2019 | $ | $ | $ | ( | ) | $ | |||||||||
Other comprehensive income before reclassifications | |||||||||||||||
Reclassification adjustments | ( | ) | ( | ) | |||||||||||
Balance at March 31, 2019 | $ | $ | $ | ( | ) | $ | |||||||||
Balance at January 1, 2020 | $ | $ | $ | ( | ) | $ | |||||||||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | ( | ) | |||||||||
Reclassification adjustments | |||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | ( | ) | $ |
(1) | Includes the impact of taxes, deferred acquisition costs, value of insurance in force acquired, unearned revenue reserves and policyholder liabilities. See Note 2 to our consolidated financial statements for further information. |
Accumulated Other Comprehensive Income Reclassification Adjustments | |||||||||||||||
Three months ended March 31, 2020 | |||||||||||||||
Unrealized Net Investment Gains (Losses) on Fixed Maturities Available-for-Sale (1) | Underfunded Status of Postretirement Benefit Plans | ||||||||||||||
Without Non-Credit Impairment Losses | With Non-Credit Impairment Losses | Total | |||||||||||||
(Dollars in thousands) | |||||||||||||||
Realized capital losses on sales of fixed maturity securities | $ | $ | $ | $ | |||||||||||
Change in allowance for credit losses on fixed maturity securities | — | — | |||||||||||||
Adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities | ( | ) | ( | ) | |||||||||||
Other expenses - net actuarial loss | |||||||||||||||
Reclassifications before income taxes | |||||||||||||||
Income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Reclassification adjustments | $ | $ | $ | $ |
Three months ended March 31, 2019 | |||||||||||||||
Unrealized Net Investment Gains (Losses) on Fixed Maturities Available-for-Sale (1) | Underfunded Status of Postretirement Benefit Plans | ||||||||||||||
Without Non-Credit Impairment Losses | With Non-Credit Impairment Losses | Total | |||||||||||||
(Dollars in thousands) | |||||||||||||||
Realized capital gains on sales of fixed maturities | $ | ( | ) | $ | $ | $ | ( | ) | |||||||
Adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities | |||||||||||||||
Other expenses - net actuarial loss | |||||||||||||||
Reclassifications before income taxes | ( | ) | ( | ) | |||||||||||
Income taxes | ( | ) | |||||||||||||
Reclassification adjustments | $ | ( | ) | $ | $ | $ | ( | ) |
(1) | See Note 2 to our consolidated financial statements for further information. |
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands, except per share data) | |||||||
Numerator: | |||||||
Net income (loss) attributable to FBL Financial Group, Inc. | $ | ( | ) | $ | |||
Less: Dividends on Series B preferred stock | |||||||
Income (loss) available to common stockholders | $ | ( | ) | $ | |||
Denominator: | |||||||
Weighted average shares - basic | |||||||
Effect of dilutive securities - stock-based compensation | |||||||
Weighted average shares - diluted | |||||||
Earnings (loss) per common share | $ | ( | ) | $ | |||
Earnings (loss) per common share - assuming dilution | $ | ( | ) | $ |
Financial Information Concerning our Operating Segments | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands) | |||||||
Pre-tax adjusted operating income: | |||||||
Annuity | $ | $ | |||||
Life Insurance | |||||||
Corporate and Other | |||||||
Total pre-tax adjusted operating income | |||||||
Adjustments to pre-tax adjusted operating income: | |||||||
Net realized gains/losses on investments (1) | ( | ) | |||||
Change in fair value of derivatives (1) | ( | ) | |||||
Pre-tax net income attributable to FBL Financial Group, Inc. | ( | ) | |||||
Income tax benefit (expense) | ( | ) | |||||
Tax on equity income | ( | ) | ( | ) | |||
Net income (loss) attributable to FBL Financial Group, Inc. | $ | ( | ) | $ | |||
Adjusted operating revenues: | |||||||
Annuity | $ | $ | |||||
Life Insurance | |||||||
Corporate and Other | |||||||
Net realized gains/losses on investments (1) | ( | ) | |||||
Change in fair value of derivatives (1) | ( | ) | |||||
Consolidated revenues | $ | $ |
(1) | Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired and interest sensitive policy reserves attributable to these items. |
Equity Income by Operating Segment | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands) | |||||||
Pre-tax equity income: | |||||||
Life Insurance | $ | $ | |||||
Corporate and Other | ( | ) | ( | ) | |||
Total pre-tax equity income | |||||||
Income taxes | ( | ) | ( | ) | |||
Equity income, net of related income taxes | $ | $ |
Reconciliation of Traditional Life Insurance Premiums, Net of Reinsurance | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands) | |||||||
Traditional and universal life insurance premiums collected | $ | $ | |||||
Premiums collected on interest sensitive products | ( | ) | ( | ) | |||
Traditional life insurance premiums collected | |||||||
Change in due premiums and other | ( | ) | ( | ) | |||
Traditional life insurance premiums as included in the Consolidated Statements of Operations | $ | $ |
Interest Sensitive Product Charges by Segment | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands) | |||||||
Annuity | |||||||
Rider and other product charges | $ | $ | |||||
Surrender charges | |||||||
Total | |||||||
Life Insurance | |||||||
Administration charges | |||||||
Cost of insurance charges | |||||||
Surrender charges | |||||||
Amortization of policy initiation fees | |||||||
Total | |||||||
Corporate and Other | |||||||
Administration charges | |||||||
Cost of insurance charges | |||||||
Surrender charges | |||||||
Separate account charges | |||||||
Amortization of policy initiation fees | |||||||
Total | |||||||
Impact of net realized gains/losses on investments and change in fair value of derivatives on amortization of unearned revenue reserves | ( | ) | |||||
Interest sensitive product charges as included in the Consolidated Statements of Operations | $ | $ |
• | U.S. gross domestic product decreased at an annual rate of 4.8% in the first quarter of 2020, compared to a 2.1% increase during the fourth quarter of 2019. |
• | U.S. unemployment rose to 4.4% at March 31, 2020 from 3.5% at December 31, 2019 and is expected to climb higher. |
• | The energy sector has come under significant pressure as the price of crude oil decreased to $20.48 per barrel at March 31, 2020 from $61.06 per barrel at December 31, 2019. |
• | The yield on the 10-year U.S. Treasury Note decreased to 0.70% at March 31, 2020 from 1.92% at December 31, 2019. |
• | Overall fixed maturity security yields increased during the first quarter of 2020 as increased business risks caused corporate credit spreads to widen to 276 basis points at March 31, 2020 from 96 basis points at December 31, 2019. |
• | Net realized losses on the sales of securities, net realized losses on the value of equity securities and an increase in the allowance for credit losses on investments totaling $25.7 million. |
• | An increase in the reserve for guaranteed living withdrawal benefits of $2.3 million. |
• | An increase in the amortization of deferred acquisition cost on variable annuities and variable universal life insurance contracts totaling $3.7 million. |
Three months ended March 31, | ||||||||||
2020 | 2019 | Change | ||||||||
(Dollars in thousands, except per share data) | ||||||||||
Net income (loss) attributable to FBL Financial Group, Inc. | $ | (2,515 | ) | $ | 34,043 | (107 | )% | |||
Net income adjustments: | ||||||||||
Net realized gains/losses on investments (1) | 20,112 | (7,230 | ) | (378 | )% | |||||
Change in fair value of derivatives (1) | 2,039 | (911 | ) | (324 | )% | |||||
Adjusted operating income (2) | $ | 19,636 | $ | 25,902 | (24 | )% | ||||
Pre-tax adjusted operating income: | ||||||||||
Annuity segment | $ | 12,019 | $ | 15,662 | (23 | )% | ||||
Life Insurance segment | 10,267 | 10,092 | 2 | % | ||||||
Corporate and Other segment | 219 | 4,319 | (95 | )% | ||||||
Total pre-tax adjusted operating income | 22,505 | 30,073 | (25 | )% | ||||||
Income taxes on adjusted operating income | (2,869 | ) | (4,171 | ) | (31 | )% | ||||
Adjusted operating income (2) | $ | 19,636 | $ | 25,902 | (24 | )% | ||||
Earnings (loss) per common share - assuming dilution | $ | (0.10 | ) | $ | 1.37 | (107 | )% | |||
Adjusted operating income per common share - assuming dilution (2) | 0.79 | 1.04 | (24 | )% | ||||||
Effective tax rate on adjusted operating income | 13 | % | 14 | % | ||||||
Average invested assets, at amortized cost (3) | $ | 8,479,853 | $ | 8,292,919 | 2 | % | ||||
Annualized yield on average invested assets (3) | 4.72 | % | 4.97 | % | ||||||
Other data | ||||||||||
Death benefits, net of reinsurance and reserves released, net of tax | $ | 23,550 | $ | 26,777 | (12 | )% | ||||
Estimated impact from separate account performance on amortization of deferred acquisition costs, deferred sales inducements and unearned revenue reserve, net of tax | (2,686 | ) | 1,738 | (255 | )% | |||||
Other investment-related income included in net investment income (1)(4) | 454 | 1,002 | (55 | )% |
(1) | Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves and deferred acquisition costs, as well as changes in interest sensitive product reserves and income taxes attributable to these items. |
(2) | Adjusted operating income is a non-GAAP measure of earnings, see the Overview section above for additional information. |
(3) | Average invested assets and annualized yield, including investments held as securities and indebtedness of related parties. |
(4) | Includes prepayment fee income and adjustments to the amortization of premium or discounts from changes in our payment speed assumptions. |
Annuity Segment | ||||||||||
Three months ended March 31, | ||||||||||
2020 | 2019 | Change | ||||||||
(Dollars in thousands) | ||||||||||
Adjusted operating revenues: | ||||||||||
Interest sensitive product charges | $ | 1,886 | $ | 1,567 | 20 | % | ||||
Net investment income | 52,768 | 51,115 | 3 | % | ||||||
Total adjusted operating revenues | 54,654 | 52,682 | 4 | % | ||||||
Adjusted operating benefits and expenses: | ||||||||||
Interest sensitive product benefits | 33,883 | 28,070 | 21 | % | ||||||
Underwriting, acquisition and insurance expenses: | ||||||||||
Commissions net of deferrals | 421 | 514 | (18 | )% | ||||||
Amortization of deferred acquisition costs | 2,646 | 2,679 | (1 | )% | ||||||
Amortization of value of insurance in force | 175 | 163 | 7 | % | ||||||
Other underwriting expenses | 5,510 | 5,594 | (2 | )% | ||||||
Total underwriting, acquisition and insurance expenses | 8,752 | 8,950 | (2 | )% | ||||||
Total adjusted operating benefits and expenses | 42,635 | 37,020 | 15 | % | ||||||
Pre-tax adjusted operating income | $ | 12,019 | $ | 15,662 | (23 | )% |
Other data | ||||||||||
Annuity premiums collected, direct (1) | $ | 58,099 | $ | 69,506 | (16 | )% | ||||
Policy liabilities and accruals, end of period | 4,528,280 | 4,379,558 | 3 | % | ||||||
Average invested assets, at amortized cost | 4,564,600 | 4,481,499 | 2 | % | ||||||
Other investment-related income included in net investment income (2) | 705 | 1,039 | (32 | )% | ||||||
Average individual annuity account value | 3,179,639 | 3,179,153 | — | % | ||||||
Earned spread on individual annuity products: | ||||||||||
Weighted average yield on cash and invested assets | 4.59 | % | 4.76 | % | ||||||
Weighted average crediting rate | 2.47 | % | 2.53 | % | ||||||
Spread | 2.12 | % | 2.23 | % | ||||||
Individual annuity withdrawal rate | 5.2 | % | 5.6 | % |
(1) | Premiums collected is a non-GAAP measure of sales production, see Note 9 to our consolidated financial statements for additional information. |
(2) | Includes prepayment fee income and adjustments to the amortization of premium or discounts from changes in our payment speed assumptions. |
Life Insurance Segment | ||||||||||
Three months ended March 31, | ||||||||||
2020 | 2019 | Change | ||||||||
(Dollars in thousands) | ||||||||||
Adjusted operating revenues: | ||||||||||
Interest sensitive product charges and other income | $ | 20,332 | $ | 18,875 | 8 | % | ||||
Traditional life insurance premiums | 49,308 | 49,392 | — | % | ||||||
Net investment income | 37,575 | 38,991 | (4 | )% | ||||||
Total adjusted operating revenues | 107,215 | 107,258 | — | % | ||||||
Adjusted operating benefits and expenses: | ||||||||||
Interest sensitive product benefits: | ||||||||||
Interest and index credits | 7,843 | 8,051 | (3 | )% | ||||||
Death benefits and other | 16,371 | 14,466 | 13 | % | ||||||
Total interest sensitive product benefits | 24,214 | 22,517 | 8 | % | ||||||
Traditional life insurance benefits: | ||||||||||
Death benefits | 26,098 | 24,416 | 7 | % | ||||||
Surrender and other benefits | 10,142 | 9,723 | 4 | % | ||||||
Increase in traditional life future policy benefits | 9,970 | 12,534 | (20 | )% | ||||||
Total traditional life insurance benefits | 46,210 | 46,673 | (1 | )% | ||||||
Distributions to participating policyholders | 2,529 | 2,534 | — | % | ||||||
Underwriting, acquisition and insurance expenses: | ||||||||||
Commission expense, net of deferrals | 4,832 | 4,639 | 4 | % | ||||||
Amortization of deferred acquisition costs | 2,419 | 4,799 | (50 | )% | ||||||
Amortization of value of insurance in force | 370 | 372 | (1 | )% | ||||||
Other underwriting expenses | 16,749 | 16,002 | 5 | % | ||||||
Total underwriting, acquisition and insurance expenses | 24,370 | 25,812 | (6 | )% | ||||||
Total adjusted operating benefits and expenses | 97,323 | 97,536 | — | % | ||||||
9,892 | 9,722 | 2 | % | |||||||
Equity income, before tax | 375 | 370 | 1 | % | ||||||
Pre-tax adjusted operating income | $ | 10,267 | $ | 10,092 | 2 | % |
Life Insurance Segment - continued | ||||||||||
Three months ended March 31, | ||||||||||
2020 | 2019 | Change | ||||||||
(Dollars in thousands) | ||||||||||
Other data | ||||||||||
Life premiums collected, net of reinsurance (1) | $ | 82,635 | $ | 78,001 | 6 | % | ||||
Policy liabilities and accruals, end of period | 3,106,864 | 3,015,751 | 3 | % | ||||||
Life insurance in force, end of period | 61,852,616 | 60,240,261 | 3 | % | ||||||
Average invested assets, at amortized cost (2) | 3,213,376 | 3,107,575 | 3 | % | ||||||
Other investment-related income included in net investment income (3) | 59 | 330 | (82 | )% | ||||||
Average interest sensitive life account value | 896,688 | 869,476 | 3 | % | ||||||
Interest sensitive life insurance spread: | ||||||||||
Weighted average yield on cash and invested assets (2) | 4.99 | % | 5.21 | % | ||||||
Weighted average crediting rate | 3.87 | % | 3.68 | % | ||||||
Spread | 1.12 | % | 1.53 | % | ||||||
Life insurance lapse and surrender rates | 4.5 | % | 4.6 | % | ||||||
Death benefits, net of reinsurance and reserves released | $ | 25,668 | $ | 26,672 | (4 | )% |
(1) | Premiums collected is a non-GAAP measure of sales production, see Note 9 to our consolidated financial statements for additional information. |
(2) | Average invested assets and weighted average yield including investments held as securities and indebtedness of related parties. |
(3) | Includes prepayment fee income and adjustments to the amortization of premium or discounts from changes in our payment speed assumptions. |
Corporate and Other Segment | ||||||||||
Three months ended March 31, | ||||||||||
2020 | 2019 | Change | ||||||||
(Dollars in thousands) | ||||||||||
Adjusted operating revenues: | ||||||||||
Interest sensitive product charges | $ | 10,956 | $ | 10,405 | 5 | % | ||||
Net investment income | 8,057 | 8,640 | (7 | )% | ||||||
Other income | 5,027 | 4,083 | 23 | % | ||||||
Total adjusted operating revenues | 24,040 | 23,128 | 4 | % | ||||||
Adjusted operating benefits and expenses: | ||||||||||
Interest sensitive product benefits | 7,626 | 10,365 | (26 | )% | ||||||
Underwriting, acquisition and insurance expenses: | ||||||||||
Commission expense, net of deferrals | 699 | 704 | (1 | )% | ||||||
Amortization of deferred acquisition costs | 5,055 | (967 | ) | (623 | )% | |||||
Other underwriting expenses | 1,777 | 1,153 | 54 | % | ||||||
Total underwriting, acquisition and insurance expenses | 7,531 | 890 | 746 | % | ||||||
Interest expense | 1,213 | 1,212 | — | % | ||||||
Other expenses | 7,421 | 6,250 | 19 | % | ||||||
Total adjusted operating benefits and expenses | 23,791 | 18,717 | 27 | % | ||||||
249 | 4,411 | (94 | )% | |||||||
Net (income) loss attributable to noncontrolling interest | 56 | (1 | ) | (5,700 | )% | |||||
Equity income, before tax | (86 | ) | (91 | ) | (5 | )% | ||||
Pre-tax adjusted operating income | $ | 219 | $ | 4,319 | (95 | )% |
Other data | ||||||||||
Average invested assets, at amortized cost (1) | $ | 701,876 | $ | 703,846 | — | % | ||||
Other investment-related income included in net investment income (2) | 4 | 121 | (97 | )% | ||||||
Average interest sensitive life account value | 358,936 | 361,872 | (1 | )% | ||||||
Death benefits, net of reinsurance and reserves released | 4,343 | 7,069 | (39 | )% | ||||||
Estimated impact on pre-tax adjusted operating income from separate account performance on amortization of deferred acquisition costs, deferred sales inducements and unearned revenue reserve | (3,400 | ) | 2,200 | (255 | )% |
(1) | Average invested assets including investments held as securities and indebtedness of related parties. |
(2) | Includes prepayment fee income and adjustments to the amortization of premium or discounts from changes in our payment speed assumptions. |
Components of income tax | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands) | |||||||
Income tax benefit (expense) | $ | 3,081 | $ | (6,276 | ) | ||
Tax on equity income | (61 | ) | (59 | ) | |||
Income tax offset on net income adjustments | (5,889 | ) | 2,164 | ||||
Income taxes on adjusted operating income | $ | (2,869 | ) | $ | (4,171 | ) | |
Income taxes on adjusted operating income before benefits of LIHTC investments | $ | (3,752 | ) | $ | (5,076 | ) | |
Amounts related to LIHTC investments | 883 | 905 | |||||
Income taxes on adjusted operating income | $ | (2,869 | ) | $ | (4,171 | ) |
Impact of Adjustments to Net Income Attributable to FBL | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands) | |||||||
Realized gains (losses) on investments and change in fair value of equity securities and derivatives | $ | (28,069 | ) | $ | 10,846 | ||
Offsets: (1) | |||||||
Change in amortization | (176 | ) | (256 | ) | |||
Reserve change on interest sensitive products | 205 | (285 | ) | ||||
Income tax | 5,889 | (2,164 | ) | ||||
Net impact of adjustments to net income | $ | (22,151 | ) | $ | 8,141 | ||
Net impact per common share - basic and assuming dilution | $ | (0.89 | ) | $ | 0.33 |
(1) | The items excluded from adjusted operating income impact the amortization of deferred acquisition costs and unearned revenue reserve. Certain interest sensitive reserves as well as income taxes are also impacted. |
Realized Gains (Losses) on Investments | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands) | |||||||
Realized gains (losses) on investments: | |||||||
Realized gains | $ | 12 | $ | 5,772 | |||
Realized losses | (182 | ) | (34 | ) | |||
Change in unrealized gains/losses on equity securities | (13,231 | ) | 4,419 | ||||
Total other-than-temporary impairment losses | — | (869 | ) | ||||
Total allowance for credit losses | (12,261 | ) | — | ||||
Net realized investment gains (losses) | $ | (25,662 | ) | $ | 9,288 |
Investment Credit Impairment Losses Recognized in Net Income | |||||||
Three months ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in thousands) | |||||||
Corporate securities: | |||||||
Financial | $ | 5,430 | $ | — | |||
Energy | 6,716 | — | |||||
Other asset-backed | — | 869 | |||||
Mortgage loans | 115 | — | |||||
Total allowance for credit losses (2020); other-than-temporary impairment losses (2019) reported in net income | $ | 12,261 | $ | 869 |
Fixed Maturity Acquisitions Selected Information | ||||||||
Three months ended March 31, | ||||||||
2020 | 2019 | |||||||
(Dollars in thousands) | ||||||||
Cost of acquisitions: | ||||||||
Corporate | $ | 123,877 | $ | 75,567 | ||||
Mortgage- and asset-backed | 95,381 | 57,951 | ||||||
Tax-exempt municipals | — | 8,060 | ||||||
Total | $ | 219,258 | $ | 141,578 | ||||
Effective annual yield | 3.50 | % | 4.33 | % | ||||
Credit quality | ||||||||
NAIC 1 designation | 66.1 | % | 74.3 | % | ||||
NAIC 2 designation | 24.8 | % | 25.7 | % | ||||
Non-investment grade | 9.1 | % | — | % | ||||
Weighted-average life in years | 7.0 | 15.0 |
Investment Portfolio Summary | |||||||||||||
March 31, 2020 | December 31, 2019 | ||||||||||||
Carrying Value | Percent | Carrying Value | Percent | ||||||||||
(Dollars in thousands) | |||||||||||||
Fixed maturities - available for sale: | |||||||||||||
Public | $ | 5,688,408 | 63.4 | % | $ | 5,763,570 | 63.4 | % | |||||
144A private placement | 1,680,060 | 18.7 | 1,699,924 | 18.7 | |||||||||
Private placement | 248,697 | 2.8 | 239,134 | 2.6 | |||||||||
Total fixed maturities - available for sale | 7,617,165 | 84.9 | 7,702,628 | 84.7 | |||||||||
Equity securities | 88,610 | 1.0 | 100,228 | 1.1 | |||||||||
Mortgage loans | 988,854 | 11.0 | 1,011,678 | 11.2 | |||||||||
Real estate | 955 | — | 955 | — | |||||||||
Policy loans | 202,227 | 2.3 | 201,589 | 2.2 | |||||||||
Short-term investments | 29,580 | 0.3 | 11,865 | 0.1 | % | ||||||||
Other investments | 41,777 | 0.5 | 62,680 | 0.7 | % | ||||||||
Total investments | $ | 8,969,168 | 100.0 | % | $ | 9,091,623 | 100.0 | % |
Credit Quality by NAIC Designation and Equivalent Rating | ||||||||||||||||
March 31, 2020 | December 31, 2019 | |||||||||||||||
NAIC Designation | Equivalent Rating (1) | Carrying Value | Percent | Carrying Value | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||||
1 | AAA, AA, A | $ | 5,279,557 | 69.3 | % | $ | 5,255,079 | 68.2 | % | |||||||
2 | BBB | 2,139,645 | 28.1 | 2,268,920 | 29.5 | |||||||||||
Total investment grade | 7,419,202 | 97.4 | 7,523,999 | 97.7 | ||||||||||||
3 | BB | 146,123 | 1.9 | 123,120 | 1.6 | |||||||||||
4 | B | 41,965 | 0.6 | 38,272 | 0.5 | |||||||||||
5 | CCC | 9,869 | 0.1 | 17,231 | 0.2 | |||||||||||
6 | In or near default | 6 | — | 6 | — | |||||||||||
Total below investment grade | 197,963 | 2.6 | 178,629 | 2.3 | ||||||||||||
Total fixed maturities - available for sale | $ | 7,617,165 | 100.0 | % | $ | 7,702,628 | 100.0 | % |
(1) | Equivalent ratings are based on those provided by nationally recognized rating agencies with some exceptions for certain residential mortgage, commercial mortgage- and asset-backed securities that are based on the expected loss of the security rather than the probability of default. This may result in a final designation being higher or lower than the equivalent credit rating. |
Gross Unrealized Gains and Gross Unrealized Losses by Internal Industry Classification | |||||||||||||||||||
March 31, 2020 | |||||||||||||||||||
Total Carrying Value | Carrying Value of Securities with Gross Unrealized Gains | Gross Unrealized Gains | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Corporate securities: | |||||||||||||||||||
Basic industrial | $ | 315,125 | $ | 213,895 | $ | 17,975 | $ | 101,230 | $ | (9,972 | ) | ||||||||
Capital goods | 296,462 | 244,789 | 20,944 | 51,673 | (2,352 | ) | |||||||||||||
Communications | 145,589 | 132,610 | 16,508 | 12,979 | (1,837 | ) | |||||||||||||
Consumer cyclical | 166,559 | 121,146 | 11,343 | 45,413 | (6,045 | ) | |||||||||||||
Consumer non-cyclical | 615,093 | 514,586 | 61,483 | 100,507 | (11,426 | ) | |||||||||||||
Energy | 344,945 | 136,945 | 13,502 | 208,000 | (55,449 | ) | |||||||||||||
Finance | 670,913 | 488,527 | 40,519 | 182,386 | (7,909 | ) | |||||||||||||
Transportation | 131,266 | 98,904 | 8,823 | 32,362 | (3,260 | ) | |||||||||||||
Utilities | 161,218 | 128,891 | 13,877 | 32,327 | (1,993 | ) | |||||||||||||
Technology | 785,525 | 715,296 | 104,734 | 70,229 | (2,948 | ) | |||||||||||||
Other | 24,628 | 24,628 | 2,413 | — | — | ||||||||||||||
Total corporate securities | 3,657,323 | 2,820,217 | 312,121 | 837,106 | (103,191 | ) | |||||||||||||
Mortgage- and asset-backed securities | 2,494,349 | 1,602,877 | 216,154 | 891,472 | (66,480 | ) | |||||||||||||
United States Government and agencies | 14,204 | 14,204 | 3,375 | — | — | ||||||||||||||
States and political subdivisions | 1,451,289 | 1,440,298 | 152,500 | 10,991 | (433 | ) | |||||||||||||
Total | $ | 7,617,165 | $ | 5,877,596 | $ | 684,150 | $ | 1,739,569 | $ | (170,104 | ) |
December 31, 2019 | |||||||||||||||||||
Total Carrying Value | Carrying Value of Securities with Gross Unrealized Gains | Gross Unrealized Gains | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Corporate securities: | |||||||||||||||||||
Basic industrial | $ | 337,004 | $ | 330,254 | $ | 33,472 | $ | 6,750 | $ | (259 | ) | ||||||||
Capital goods | 302,566 | 292,480 | 28,427 | 10,086 | (278 | ) | |||||||||||||
Communications | 143,907 | 139,092 | 17,900 | 4,815 | (453 | ) | |||||||||||||
Consumer cyclical | 154,744 | 145,584 | 12,971 | 9,160 | (357 | ) | |||||||||||||
Consumer non-cyclical | 611,618 | 554,145 | 68,658 | 57,473 | (4,057 | ) | |||||||||||||
Energy | 420,805 | 384,898 | 42,177 | 35,907 | (6,637 | ) | |||||||||||||
Finance | 692,341 | 667,173 | 62,295 | 25,168 | (2,287 | ) | |||||||||||||
Transportation | 129,421 | 116,659 | 11,186 | 12,762 | (415 | ) | |||||||||||||
Utilities | 158,073 | 155,105 | 15,617 | 2,968 | (23 | ) | |||||||||||||
Technology | 804,317 | 770,167 | 123,232 | 34,150 | (765 | ) | |||||||||||||
Other | 24,154 | 24,154 | 2,114 | — | — | ||||||||||||||
Total corporate securities | 3,778,950 | 3,579,711 | 418,049 | 199,239 | (15,531 | ) | |||||||||||||
Mortgage- and asset-backed securities | 2,432,382 | 2,092,650 | 144,832 | 339,732 | (5,956 | ) | |||||||||||||
United States Government and agencies | 14,123 | 11,629 | 1,711 | 2,494 | (5 | ) | |||||||||||||
States and political subdivisions | 1,477,173 | 1,451,870 | 145,125 | 25,303 | (866 | ) | |||||||||||||
Total | $ | 7,702,628 | $ | 7,135,860 | $ | 709,717 | $ | 566,768 | $ | (22,358 | ) |
Credit Quality of Available-for-Sale Fixed Maturities with Unrealized Losses | ||||||||||||||||
March 31, 2020 | ||||||||||||||||
NAIC Designation | Equivalent Rating | Carrying Value of Securities with Gross Unrealized Losses | Percent of Total | Gross Unrealized Losses | Percent of Total | |||||||||||
(Dollars in thousands) | ||||||||||||||||
1 | AAA, AA, A | $ | 904,365 | 52.0 | % | $ | (62,180 | ) | 36.6 | % | ||||||
2 | BBB | 678,811 | 39.0 | (66,156 | ) | 38.9 | ||||||||||
Total investment grade | 1,583,176 | 91.0 | (128,336 | ) | 75.5 | |||||||||||
3 | BB | 123,293 | 7.1 | (36,241 | ) | 21.3 | ||||||||||
4 | B | 29,937 | 1.7 | (5,526 | ) | 3.2 | ||||||||||
5 | CCC | 3,157 | 0.2 | (1 | ) | — | ||||||||||
6 | In or near default | 6 | — | — | — | |||||||||||
Total below investment grade | 156,393 | 9.0 | (41,768 | ) | 24.5 | |||||||||||
Total | $ | 1,739,569 | 100.0 | % | $ | (170,104 | ) | 100.0 | % |
December 31, 2019 | ||||||||||||||||
NAIC Designation | Equivalent Rating | Carrying Value of Securities with Gross Unrealized Losses | Percent of Total | Gross Unrealized Losses | Percent of Total | |||||||||||
(Dollars in thousands) | ||||||||||||||||
1 | AAA, AA, A | $ | 394,099 | 69.5 | % | $ | (6,932 | ) | 31.0 | % | ||||||
2 | BBB | 103,400 | 18.2 | (3,093 | ) | 13.8 | ||||||||||
Total investment grade | 497,499 | 87.7 | (10,025 | ) | 44.8 | |||||||||||
3 | BB | 37,184 | 6.6 | (5,096 | ) | 22.9 | ||||||||||
4 | B | 22,928 | 4.1 | (1,616 | ) | 7.2 | ||||||||||
5 | CCC | 9,150 | 1.6 | (5,621 | ) | 25.1 | ||||||||||
6 | In or near default | 7 | — | — | — | |||||||||||
Total below investment grade | 69,269 | 12.3 | (12,333 | ) | 55.2 | |||||||||||
Total | $ | 566,768 | 100.0 | % | $ | (22,358 | ) | 100.0 | % |
Available-For-Sale Fixed Maturities with Unrealized Losses by Length of Time | |||||||||||||||
March 31, 2020 | |||||||||||||||
Amortized Cost | Gross Unrealized Losses | ||||||||||||||
Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Three months or less | $ | 76,110 | $ | 1,626,219 | $ | (27,556 | ) | $ | (103,257 | ) | |||||
Greater than three months to six months | — | 7,982 | — | (265 | ) | ||||||||||
Greater than six months to nine months | — | 25,685 | — | (2,097 | ) | ||||||||||
Greater than nine months to twelve months | 3,944 | 8,000 | (2,451 | ) | (670 | ) | |||||||||
Greater than twelve months | 43,961 | 117,772 | (17,789 | ) | (16,019 | ) | |||||||||
Total | $ | 124,015 | $ | 1,785,658 | $ | (47,796 | ) | $ | (122,308 | ) |
Available-For-Sale Fixed Maturities with Unrealized Losses by Length of Time | |||||||||||||||
December 31, 2019 | |||||||||||||||
Amortized Cost | Gross Unrealized Losses | ||||||||||||||
Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Three months or less | $ | — | $ | 255,507 | $ | — | $ | (3,518 | ) | ||||||
Greater than three months to six months | — | 98,253 | — | (2,093 | ) | ||||||||||
Greater than six months to nine months | — | 13,944 | — | (464 | ) | ||||||||||
Greater than nine months to twelve months | — | — | — | — | |||||||||||
Greater than twelve months | 25,805 | 195,617 | (8,444 | ) | (7,839 | ) | |||||||||
Total | $ | 25,805 | $ | 563,321 | $ | (8,444 | ) | $ | (13,914 | ) |
Available-For-Sale Fixed Maturities with Unrealized Losses by Maturity Date | |||||||||||||||
March 31, 2020 | December 31, 2019 | ||||||||||||||
Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Due in one year or less | $ | 21,200 | $ | (653 | ) | $ | 1,498 | $ | (2 | ) | |||||
Due after one year through five years | 150,892 | (14,130 | ) | 17,902 | (3,340 | ) | |||||||||
Due after five years through ten years | 199,031 | (25,347 | ) | 32,003 | (478 | ) | |||||||||
Due after ten years | 476,974 | (63,494 | ) | 175,633 | (12,582 | ) | |||||||||
848,097 | (103,624 | ) | 227,036 | (16,402 | ) | ||||||||||
Mortgage- and asset-backed | 891,472 | (66,480 | ) | 339,732 | (5,956 | ) | |||||||||
Total | $ | 1,739,569 | $ | (170,104 | ) | $ | 566,768 | $ | (22,358 | ) |
Mortgage- and Asset-Backed Securities by Collateral Type | |||||||||||||||||||||
March 31, 2020 | December 31, 2019 | ||||||||||||||||||||
Amortized Cost | Carrying Value | Percent of Fixed Maturities | Amortized Cost | Carrying Value | Percent of Fixed Maturities | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Government agency | $ | 217,813 | $ | 249,048 | 3.3 | % | $ | 220,209 | $ | 236,734 | 3.1 | % | |||||||||
Prime | 341,574 | 337,448 | 4.4 | 338,795 | 357,769 | 4.6 | |||||||||||||||
Alt-A | 65,376 | 69,667 | 0.9 | 68,483 | 80,732 | 1.0 | |||||||||||||||
Subprime | 127,284 | 123,187 | 1.6 | 133,410 | 144,485 | 1.9 | |||||||||||||||
Commercial mortgage | 977,147 | 1,141,642 | 15.0 | 969,453 | 1,045,473 | 13.6 | |||||||||||||||
Collateralized loan obligation | 192,547 | 173,412 | 2.3 | 186,671 | 185,427 | 2.4 | |||||||||||||||
Non-mortgage | 422,934 | 399,945 | 5.3 | 376,485 | 381,762 | 5.0 | |||||||||||||||
Total | $ | 2,344,675 | $ | 2,494,349 | 32.8 | % | $ | 2,293,506 | $ | 2,432,382 | 31.6 | % |
Residential Mortgage-Backed Securities by NAIC Designation and Origination Year | ||||||||||||||||||||||||||||||||
March 31, 2020 | ||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
1 | $ | 57,884 | $ | 57,509 | $ | 59,951 | $ | 66,667 | $ | 498,226 | $ | 521,120 | $ | 616,061 | $ | 645,296 | ||||||||||||||||
2 | — | — | 705 | 533 | — | — | 705 | 533 | ||||||||||||||||||||||||
3 | 214 | 199 | 190 | 195 | — | — | 404 | 394 | ||||||||||||||||||||||||
4 | — | — | 4,240 | 4,381 | — | — | 4,240 | 4,381 | ||||||||||||||||||||||||
5 | — | — | 3,158 | 3,157 | — | — | 3,158 | 3,157 | ||||||||||||||||||||||||
6 | 6 | 6 | — | — | — | — | 6 | 6 | ||||||||||||||||||||||||
Total | $ | 58,104 | $ | 57,714 | $ | 68,244 | $ | 74,933 | $ | 498,226 | $ | 521,120 | $ | 624,574 | $ | 653,767 |
December 31, 2019 | ||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
1 | $ | 60,698 | $ | 62,145 | $ | 61,993 | $ | 80,465 | $ | 495,061 | $ | 519,147 | $ | 617,752 | $ | 661,757 | ||||||||||||||||
3 | 279 | 275 | 1,113 | 1,080 | — | — | 1,392 | 1,355 | ||||||||||||||||||||||||
4 | — | — | 4,297 | 5,372 | — | — | 4,297 | 5,372 | ||||||||||||||||||||||||
5 | — | — | 3,216 | 3,898 | — | — | 3,216 | 3,898 | ||||||||||||||||||||||||
6 | 6 | 6 | — | — | — | — | 6 | 6 | ||||||||||||||||||||||||
Total | $ | 60,983 | $ | 62,426 | $ | 70,619 | $ | 90,815 | $ | 495,061 | $ | 519,147 | $ | 626,663 | $ | 672,388 |
Commercial Mortgage-Backed Securities by NAIC Designation and Origination Year | ||||||||||||||||||||||||||||||||
March 31, 2020 | ||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
1 | $ | 7,783 | $ | 9,561 | $ | 93,150 | $ | 119,298 | $ | 834,815 | $ | 961,939 | $ | 935,748 | $ | 1,090,798 | ||||||||||||||||
2 | — | — | 41,399 | 50,844 | — | — | 41,399 | 50,844 | ||||||||||||||||||||||||
Total (1) | $ | 7,783 | $ | 9,561 | $ | 134,549 | $ | 170,142 | $ | 834,815 | $ | 961,939 | $ | 977,147 | $ | 1,141,642 |
December 31, 2019 | ||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
1 | $ | 7,908 | $ | 8,851 | $ | 93,249 | $ | 110,805 | $ | 826,744 | $ | 880,702 | $ | 927,901 | $ | 1,000,358 | ||||||||||||||||
2 | — | — | 41,552 | 45,115 | — | — | 41,552 | 45,115 | ||||||||||||||||||||||||
Total (1) | $ | 7,908 | $ | 8,851 | $ | 134,801 | $ | 155,920 | $ | 826,744 | $ | 880,702 | $ | 969,453 | $ | 1,045,473 |
(1) | The CMBS portfolio included government agency-backed securities with a carrying value of $920.9 million at March 31, 2020 and $845.5 million at December 31, 2019. Also included in the CMBS portfolio are military housing bonds totaling $181.6 million at March 31, 2020 and $163.9 million at December 31, 2019. These bonds are used to fund the construction of multi-family homes on United States military bases. The bonds are backed by a first mortgage lien on residential military housing projects. |
Other Asset-Backed Securities by NAIC Designation and Origination Year | ||||||||||||||||||||||||||||||||
March 31, 2020 | ||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
1 | $ | 5,958 | $ | 5,152 | $ | 127,728 | $ | 127,082 | $ | 496,641 | $ | 462,372 | $ | 630,327 | $ | 594,606 | ||||||||||||||||
2 | — | — | — | — | 104,226 | 95,925 | 104,226 | 95,925 | ||||||||||||||||||||||||
3 | 161 | 151 | — | — | 5,165 | 5,170 | 5,326 | 5,321 | ||||||||||||||||||||||||
4 | 1,348 | 1,361 | — | — | — | — | 1,348 | 1,361 | ||||||||||||||||||||||||
5 | — | — | — | — | 1,727 | 1,727 | 1,727 | 1,727 | ||||||||||||||||||||||||
Total | $ | 7,467 | $ | 6,664 | $ | 127,728 | $ | 127,082 | $ | 607,759 | $ | 565,194 | $ | 742,954 | $ | 698,940 |
Other Asset-Backed Securities by NAIC Designation and Origination Year | ||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
1 | $ | 6,188 | $ | 5,981 | $ | 134,272 | $ | 147,913 | $ | 435,077 | $ | 435,779 | $ | 575,537 | $ | 589,673 | ||||||||||||||||
2 | 1,396 | 1,488 | 1,547 | 1,608 | 113,762 | 116,354 | 116,705 | 119,450 | ||||||||||||||||||||||||
3 | 163 | 160 | — | — | 3,230 | 3,483 | 3,393 | 3,643 | ||||||||||||||||||||||||
5 | — | — | — | — | 1,755 | 1,755 | 1,755 | 1,755 | ||||||||||||||||||||||||
Total | $ | 7,747 | $ | 7,629 | $ | 135,819 | $ | 149,521 | $ | 553,824 | $ | 557,371 | $ | 697,390 | $ | 714,521 |
March 31, 2020 | December 31, 2019 | Percentage change | ||||||
Selected other assets: | ||||||||
Cash and cash equivalents | 17,524 | 17,277 | 1.4 | % | ||||
Reinsurance recoverable | 105,438 | 107,498 | (1.9 | )% | ||||
Deferred acquisition costs | 337,972 | 289,456 | 16.8 | % | ||||
Other assets | 168,045 | 167,940 | 0.1 | % | ||||
Assets held in separate accounts | 525,582 | 645,881 | (18.6 | )% | ||||
Selected other liabilities: | ||||||||
Future policy benefits | 7,502,843 | 7,393,549 | 1.5 | % | ||||
Other policyholder funds | 595,252 | 597,256 | (0.3 | )% | ||||
Deferred income taxes | 119,093 | 152,373 | (21.8 | )% | ||||
Other liabilities | 107,841 | 107,013 | 0.8 | % | ||||
Liabilities held in separate accounts | 525,582 | 645,881 | (18.6 | )% |
March 31, 2020 | December 31, 2019 | Percentage change | ||||||||
(dollars in thousands, except per share data) | ||||||||||
Total FBL Financial Group, Inc. stockholders’ equity | $ | 1,334,280 | $ | 1,485,757 | (10.2 | )% | ||||
Common stockholders’ equity | 1,331,280 | 1,482,757 | (10.2 | )% | ||||||
Book value per share | $ | 54.02 | $ | 60.12 | (10.1 | )% | ||||
Less: Per share impact of accumulated other comprehensive income | 10.48 | 14.39 | (27.2 | )% | ||||||
Book value per share, excluding accumulated other comprehensive income (1) | $ | 43.54 | $ | 45.73 | (4.8 | )% |
(1) | Book value per share excluding accumulated other comprehensive income is a non-GAAP financial measure. Since accumulated other comprehensive income fluctuates from quarter to quarter due to unrealized changes in the fair value of investments caused principally by changes in market interest rates, we believe this non-GAAP financial measure provides useful supplemental information. |
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | |||||||
January 1, 2020 through January 31, 2020 | — | $ | — | — | $36,321,488 | ||||||
February 1, 2020 through February 29, 2020 | — | — | — | $36,321,488 | |||||||
March 1, 2020 through March 31, 2020 | 24,525 | 32.97 | 24,525 | $35,512,900 | |||||||
Total | 24,525 | $ | 32.97 |
10.1*+ | |
10.2*+ | |
10.3*+ | |
31.1+ | |
31.2+ | |
32+ | |
101+ | Interactive Data Files formatted in iXBRL (Inline eXtensible Business Reporting Language) from FBL Financial Group, Inc.’s Quarterly Report on Form 10-Q for the period ended March 31, 2020 as follows: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statement of Changes in Stockholders’ Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Financial Statements |
104 | Cover Page Interactive Data File formatted as iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101. |
+ | Filed herewith |
* | Exhibit relates to a compensatory plan for management or directors. |
FBL FINANCIAL GROUP, INC. | ||
By | /s/ Daniel D. Pitcher | |
Daniel D. Pitcher | ||
Chief Executive Officer (Principal Executive Officer) | ||
By | /s/ Donald J. Seibel | |
Donald J. Seibel | ||
Chief Financial Officer and Treasurer (Principal Financial Officer) | ||
By | /s/ Anthony J. Aldridge | |
Anthony J. Aldridge | ||
Chief Accounting Officer (Principal Accounting Officer) |
FBL FINANCIAL GROUP, INC. By: Its: |
PARTICIPANT: By: Participant |
FBL FINANCIAL GROUP, INC. By: Its: |
PARTICIPANT: By: |
I, Daniel D. Pitcher, certify that: | |||
1. | I have reviewed this report on Form 10-Q of FBL Financial Group, Inc.; | ||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3. | Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | ||
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | ||
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | ||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By | /s/ Daniel D. Pitcher | ||
Daniel D. Pitcher | |||
Chief Executive Officer (Principal Executive Officer) |
I, Donald J. Seibel, certify that: | |||
1. | I have reviewed this report on Form 10-Q of FBL Financial Group, Inc.; | ||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3. | Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | ||
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | ||
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | ||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By | /s/ Donald J. Seibel | ||
Donald J. Seibel | |||
Chief Financial Officer and Treasurer (Principal Financial Officer) |
(1 | ) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; | ||||
and | ||||||
(2 | ) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By | /s/ Daniel D. Pitcher | ||
Daniel D. Pitcher | |||
Chief Executive Officer (Principal Executive Officer) | |||
By | /s/ Donald J. Seibel | ||
Donald J. Seibel | |||
Chief Financial Officer and Treasurer (Principal Financial Officer) |
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Earnings per Share Computation of EPS (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Numerator [Abstract] | ||
Net income attributable to FBL Financial Group, Inc. | $ (2,515) | $ 34,043 |
Less: Dividends Series B preferred stock | (38) | (38) |
Income available to common stockholders | $ (2,553) | $ 34,005 |
Denominator [Abstract] | ||
Weighted average shares - diluted | 24,762,820 | 24,776,453 |
Weighted average shares - basic | 24,762,820 | 24,765,277 |
Effect of dilutive securities - stock-based compensation | 0 | 11,176 |
Earnings (loss) per common share | $ (0.10) | $ 1.37 |
Earnings (loss) per common share - assuming dilution | $ (0.10) | $ 1.37 |
Investment Operations Credit loss component of Other-than-temporary Impairments on Fixed Maturities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, No Previous Impairment | $ 12,261 | $ 0 |
Balance at end of period | 12,146 | |
Corporate Debt Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, No Previous Impairment | 12,146 | $ 0 |
Balance at end of period | $ 12,146 |
Credit Arrangements (Notes) |
3 Months Ended |
---|---|
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Credit Arrangements |
Segment Information |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We analyze operations by reviewing financial information regarding our primary products that are aggregated into the Annuity and Life Insurance product segments. Our Corporate and Other segment consists of less significant business activities. Our chief operating decision makers use pre-tax adjusted operating income to evaluate segment performance and allocate resources. Pre-tax adjusted operating income consists of pre-tax net income adjusted to exclude realized gains and losses on investments including the change in fair value of equity securities, the change in allowances for credit losses on investments, and the change in fair value of derivatives as the impact of these items can fluctuate greatly from period to period. These fluctuations make it difficult to analyze core operating trends. In addition, for derivatives not designated as hedges, there is a mismatch between the valuation of the asset and liability when deriving net income (loss). Specifically, call options relating to our indexed annuity business are one-year assets while the embedded derivatives in the indexed contracts represent the rights of the contract holder to receive index credits over the entire period the indexed products are expected to be in force. Adjustments to pre-tax net income are net of amortization of unearned revenue reserves and deferred acquisition costs, as well as changes in interest sensitive product reserves. While not applicable for the periods reported herein, in determining pre-tax adjusted operating income we will also remove the impact of settlements or judgments arising from lawsuits, net of any recoveries from third parties, the cumulative effect of changes in accounting principles and discontinued operations. Segment results are reported net of inter-segment transactions.
Interest expense is attributable to the Corporate and Other segment. Expenditures for long-lived assets were not significant during the periods presented above. Goodwill at March 31, 2020 and December 31, 2019 was allocated among the segments as follows: Annuity ($3.9 million) and Life Insurance ($6.1 million). Equity income related to securities and indebtedness of related parties is attributable to the Life Insurance and Corporate and Other segments. The following chart provides the related equity income by segment.
Premiums collected, which is not a measure used in financial statements prepared according to GAAP, includes premiums received on life insurance policies and deposits on annuities and universal life-type products. Premiums collected is a common life insurance industry measure of agent productivity. Net premiums collected totaled $154.0 million for the quarter ended March 31, 2020 and $160.7 million for the same period in 2019. Under GAAP, premiums on whole life and term life policies are recognized as revenues over the premium-paying period and reported in the Life Insurance segment. The following chart provides a reconciliation of life insurance premiums collected to those reported in the GAAP financial statements.
There is no comparable GAAP financial measure for premiums collected on annuities and universal life-type products. GAAP revenues for those interest sensitive and variable products consist of various policy charges and fees assessed on those contracts, as summarized in the chart below.
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Fair Values (Tables) |
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Fair Values [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation of our Financial Instruments Measured on Recurring Basis by hierarchy levels [Table Text Block] |
(1) A private equity fund with a fair value estimate of $9.0 million at March 31, 2020 and $8.4 million at December 31, 2019 using net asset value per share as a practical expedient, has not been classified in the fair value hierarchy above in accordance with fair value reporting guidance. This fund invests in senior secured middle market loans and had unfunded commitments totaling $1.1 million at March 31, 2020 and $1.7 million at December 31, 2019. The investment is not currently eligible for redemption.
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Level 3 fixed maturities on Measurement on Recurring Basis by Valuation Technique [Table Text Block] |
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Quantitative Information about Level 3 Fair Value Measurement Inputs [Text Block] |
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Level 3 Financial Instruments Changes in Fair Value [Table Text Block] |
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Financial Instruments Not Reported at Value [Table Text Block] |
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Segment Information (Tables) |
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Reconciliation of Revenue from Segments to Consolidated [Table Text Block] |
(1) Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired and interest sensitive policy reserves attributable to these items.
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Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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Reconciliation of Non-GAAP measures [Table Text Block] |
There is no comparable GAAP financial measure for premiums collected on annuities and universal life-type products. GAAP revenues for those interest sensitive and variable products consist of various policy charges and fees assessed on those contracts, as summarized in the chart below.
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Consolidated Balance Sheet Parenthetical disclosure - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | $ 7,115,265 | $ 7,015,269 |
Allowance for credit loss, fixed maturities | 12,146 | |
Equity Securities, Cost | 96,882 | $ 95,269 |
Allowance for credit loss, mortgage loans | $ 3,279 | |
Common Stock, Shares, Outstanding | 24,642,190 | 24,664,215 |
Preferred Stock | ||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Outstanding | 5,000,000 | 5,000,000 |
Common Class A | ||
Common Stock, Shares Authorized | 88,500,000 | 88,500,000 |
Common Stock, Shares, Issued | 24,630,777 | 24,652,802 |
Common Stock, Shares, Outstanding | 24,630,777 | 24,652,802 |
Common Class B | ||
Common Stock, Shares Authorized | 1,500,000 | 1,500,000 |
Common Stock, Shares, Issued | 11,413 | 11,413 |
Common Stock, Shares, Outstanding | 11,413 | 11,413 |
Commitments and Contingencies Unfunded Commitments (Details) $ in Millions |
Mar. 31, 2020
USD ($)
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Limited partnership | Other Assets | |
Other Commitments [Line Items] | |
Other Commitment | $ 58.2 |
Private Placement | Fixed Maturities | |
Other Commitments [Line Items] | |
Other Commitment | $ 5.8 |
Fair Values Level 3 Financial Instruments Changes in Fair Value (Details) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands |
3 Months Ended | |||
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | $ 36,050 | $ 100,414 | ||
Purchases | 10,037 | 11,000 | ||
Disposals | (499) | (1,437) | ||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | (1,171) | 195 | ||
Transfers Into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | [1] | (16,165) | (59,918) | |
Amortization included in net income | (1) | (8) | ||
Asset Balance, end of period | 28,251 | 49,856 | ||
Corporate Debt Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | 6,588 | 22,011 | ||
Purchases | 6,983 | 6,000 | ||
Disposals | (352) | (1,262) | ||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | (154) | (212) | ||
Transfers Into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | (3,609) | 0 | ||
Amortization included in net income | 0 | (8) | ||
Asset Balance, end of period | 9,456 | 26,953 | ||
Commercial mortgage-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | 12,780 | 67,940 | ||
Purchases | 0 | 0 | ||
Disposals | (98) | (92) | ||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | (920) | (195) | ||
Transfers Into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | (4,556) | (59,918) | ||
Amortization included in net income | 0 | 0 | ||
Asset Balance, end of period | 7,206 | 8,125 | ||
Other asset backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | 9,755 | 3,601 | ||
Purchases | 3,054 | 5,000 | ||
Disposals | (49) | (83) | ||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | (27) | 869 | ||
Transfers Into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | (8,000) | 0 | ||
Amortization included in net income | (1) | 0 | ||
Asset Balance, end of period | 4,732 | 7,649 | ||
Non-redeemable preferred stock | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Asset Balance, beginning of period | 6,927 | 6,862 | ||
Purchases | 0 | 0 | ||
Disposals | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in net income | 0 | 0 | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | (70) | 267 | ||
Transfers Into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Amortization included in net income | 0 | 0 | ||
Asset Balance, end of period | 6,857 | 7,129 | ||
Index Product Embedded Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Liability balance, beginning of period | 76,346 | 40,028 | ||
Purchases | 4,891 | 3,479 | ||
Settlements | (997) | (1,169) | ||
Realized and unrealized gains (losses), net, included in net income | (19,169) | (9,553) | ||
Realized and unrealized gains (losses), net, included in other comprehensive income | 0 | 0 | ||
Transfers Into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | [1] | 0 | 0 | |
Liability balance, end of period | $ 61,071 | $ 51,891 | ||
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Investment Operations Net Unrealized Gains (Losses) on Investments in AOCI (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Net Unrealized Gains Losses [Line Items] | ||
Assumed changes in amortization of DAC | $ (152,526) | $ (200,227) |
Assumed changes in amortization pattern of VIIF | (11,747) | (12,498) |
Assumed changes in amortization pattern of URR | 17,362 | 18,025 |
Assumed change in policyholder liability | (27,382) | (30,642) |
Provision for deferred income taxes | (71,348) | (97,023) |
Accumulated other comprehensive income | 258,422 | 354,764 |
Debt Securities | ||
Net Unrealized Gains Losses [Line Items] | ||
Unrealized appreciation on fixed maturities available for sale | 514,046 | 687,359 |
Accumulated Net Unrealized Investment Gain (Loss) | ||
Net Unrealized Gains Losses [Line Items] | ||
Accumulated other comprehensive income | $ 268,405 | $ 364,994 |
Consolidated Statements of Changes in Stockholder's Equity - USD ($) $ in Thousands |
Total |
Series B Preferred Stock |
Class A and Class B Common Stock |
Accumulated Other Comprehensive Income |
Retained Earnings |
Non- controlling Interest |
|||
---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2018 | $ 1,184,259 | $ 3,000 | $ 152,724 | $ 91,318 | $ 937,097 | $ 120 | |||
Net income (loss) | 34,044 | 34,043 | 1 | ||||||
Other comprehensive loss | 97,848 | [1] | 97,848 | ||||||
Stock-based compensation | 202 | 202 | |||||||
Purchase of common stock | (4,577) | (410) | (4,167) | ||||||
Dividends on preferred stock | (38) | (38) | |||||||
Dividends on common stock | (48,812) | (48,812) | |||||||
Balance at Mar. 31, 2019 | 1,263,521 | 3,000 | 152,516 | 189,166 | 918,718 | 121 | |||
Balance at Dec. 31, 2019 | 1,485,916 | 3,000 | 152,733 | 354,764 | 975,260 | 159 | |||
Net income (loss) | (2,571) | (2,515) | (56) | ||||||
Net income (loss) | Accounting Standards Update 2016-13 | (100) | ||||||||
Other comprehensive loss | (96,342) | [1] | (96,342) | ||||||
Stock-based compensation | 245 | 245 | |||||||
Purchase of common stock | (809) | (152) | (657) | ||||||
Dividends on preferred stock | (38) | (38) | |||||||
Dividends on common stock | (49,333) | (49,333) | |||||||
Noncontrolling Interest, Period Increase (Decrease) | (61) | (61) | |||||||
Balance at Mar. 31, 2020 | $ 1,334,322 | $ 3,000 | $ 152,826 | $ 258,422 | $ 920,032 | $ 42 | |||
|
Defined Benefit Plan (Tables) |
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Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] |
|
Significant Accounting Policies Recent accounting pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Jan. 01, 2020 |
Jan. 01, 2019 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating Lease, Right-of-Use Asset | $ 7,200 | |||
Operating Lease, Liability | 7,200 | |||
Net income (loss) | $ (2,571) | $ 34,044 | ||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 595 | |||
Accounting Standards Update 2016-13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ (2,685) | |||
Net income (loss) | $ (100) | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic Earnings Per Share | $ (0.01) | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Diluted Earnings Per Share | $ (0.01) | |||
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net income (loss) | $ (2,515) | $ 34,043 | ||
Retained Earnings | Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 595 | |||
Retained Earnings | Accounting Standards Update 2016-13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | (2,685) | |||
Mortgages | Retained Earnings | Accounting Standards Update 2016-13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | (3,100) | |||
Reinsurance Recoverable | Retained Earnings | Accounting Standards Update 2016-13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ (900) |
Consolidated Balance Sheet - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Investments: | ||
Fixed maturities - available for sale, at fair value (amortized cost 2020 - $7,115,265, 2019 - $7,015,269; and allowance for credit losses 2020 - $12,146, 2019 - $0) | $ 7,617,165 | $ 7,702,628 |
Equity securities at fair value (cost: 2020 - $96,882, 2019 - $95,269) | 88,610 | 100,228 |
Mortgage loans (net of allowance for credit losses 2020 - $3,279, 2019 - $0) | 988,854 | 1,011,678 |
Real estate | 955 | 955 |
Policy loans | 202,227 | 201,589 |
Short-term investments | 29,580 | 11,865 |
Other investments | 41,777 | 62,680 |
Total investments | 8,969,168 | 9,091,623 |
Cash and cash equivalents | 17,524 | 17,277 |
Securities and indebtedness of related parties | 77,641 | 74,791 |
Accrued investment income | 77,263 | 72,332 |
Amounts receivable from affiliates | 3,916 | 4,357 |
Reinsurance recoverable | 105,438 | 107,498 |
Deferred acquisition costs | 337,972 | 289,456 |
Value of insurance in force acquired | 2,829 | 2,624 |
Current income taxes recoverable | 7,570 | 6,427 |
Other assets | 168,045 | 167,940 |
Assets held in separate accounts | 525,582 | 645,881 |
Total assets | 10,292,948 | 10,480,206 |
Future policy benefits: | ||
Interest sensitive products | 5,646,263 | 5,548,212 |
Traditional life insurance and accident and health products | 1,856,580 | 1,845,337 |
Other policy claims and benefits | 47,713 | 46,883 |
Supplementary contracts without life contingencies | 293,016 | 296,915 |
Advance premiums and other deposits | 254,523 | 253,458 |
Amounts payable to affiliates | 1,015 | 1,218 |
Short-term Debt | 10,000 | 0 |
Long-term debt | 97,000 | 97,000 |
Deferred Income Taxes | 119,093 | 152,373 |
Other liabilities | 107,841 | 107,013 |
Liabilities related to separate accounts | 525,582 | 645,881 |
Total liabilities | 8,958,626 | 8,994,290 |
FBL Financial Group, Inc. stockholders' equity: | ||
Preferred stock, without par value, at liquidation value - authorized 10,000,000 shares, issued and outstanding 5,000,000 Series B shares | 3,000 | 3,000 |
Accumulated other comprehensive income | 258,422 | 354,764 |
Retained earnings | 920,032 | 975,260 |
Total FBL Financial Group, Inc. stockholders’ equity | 1,334,280 | 1,485,757 |
Noncontrolling interest | 42 | 159 |
Total stockholders’ equity | 1,334,322 | 1,485,916 |
Total liabilities and stockholders’ equity | 10,292,948 | 10,480,206 |
Class A common stock, without par value - authorized 88,500,000 shares, issued and outstanding 24,630,777 shares in 2020 and 24,652,802 shares in 2019 | ||
FBL Financial Group, Inc. stockholders' equity: | ||
Common stock, without par value | 152,754 | 152,661 |
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 11,413 shares in 2020 and 2019 | ||
FBL Financial Group, Inc. stockholders' equity: | ||
Common stock, without par value | $ 72 | $ 72 |
Credit Arrangements (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Short-term Debt [Line Items] | ||
Short-term Debt | $ 10,000 | $ 0 |
Short-Term Debt March 23rd | Federal Home Loan Bank Advances | ||
Short-term Debt [Line Items] | ||
Short-term Debt | $ 10,000 | |
Line of Credit Facility, Interest Rate at Period End | 0.48% |
Fair Values Quantitative Information about Unobservable Measurement Inputs (Details) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure | $ 28,251 | $ 36,050 | |
Index Product Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Future policy benefits - index product embedded derivatives | 61,071 | 76,346 | |
Corporate Debt Securities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure | 9,456 | 6,588 | |
Commercial mortgage-backed | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure | 7,205 | 12,780 | |
Other asset backed securities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure | 6,000 | ||
Non-redeemable preferred stock | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure | 6,858 | 6,927 | |
Asset fair value by technique | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure | $ 23,519 | $ 32,295 | |
Minimum | Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Corporate Debt Securities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .02 | .0211 | |
Minimum | Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Commercial mortgage-backed | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .0301 | .0118 | |
Minimum | Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Other asset backed securities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .0215 | ||
Minimum | Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Non-redeemable preferred stock | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .0606 | .0272 | |
Minimum | Valuation Technique, Discounted Cash Flow | Measurement Input, Entity Credit Risk | Index Product Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .0225 | .004 | |
Minimum | Valuation Technique, Discounted Cash Flow | Measurement Input, Risk Margin | Index Product Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | 0.0015 | 0.0015 | |
Maximum | Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Corporate Debt Securities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .1075 | .0585 | |
Maximum | Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Commercial mortgage-backed | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .0454 | .0222 | |
Maximum | Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Other asset backed securities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .023 | ||
Maximum | Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Non-redeemable preferred stock | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .0606 | .0272 | |
Maximum | Valuation Technique, Discounted Cash Flow | Measurement Input, Entity Credit Risk | Index Product Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .0285 | .0135 | |
Maximum | Valuation Technique, Discounted Cash Flow | Measurement Input, Risk Margin | Index Product Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | 0.004 | 0.004 | |
Weighted Average | Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Corporate Debt Securities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .0703 | .0433 | |
Weighted Average | Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Commercial mortgage-backed | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .0393 | .0192 | |
Weighted Average | Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Other asset backed securities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .0223 | ||
Weighted Average | Valuation Technique, Discounted Cash Flow | Measurement Input, Credit Spread | Non-redeemable preferred stock | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .0606 | .0272 | |
Weighted Average | Valuation Technique, Discounted Cash Flow | Measurement Input, Entity Credit Risk | Index Product Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | .025 | .008 | |
Weighted Average | Valuation Technique, Discounted Cash Flow | Measurement Input, Risk Margin | Index Product Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Input range and weighted average | 0.0025 | 0.0025 |
Stockholders Equity AOCI table (Details) - USD ($) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|||
Accumulated other comprehensive income | $ 258,422 | $ 354,764 | ||||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, Net of Tax | (106,144) | $ 99,900 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Net of Tax, Attributable to Parent | (98,857) | 131,891 | ||||
Accumulated Net Unrealized Investment Gain (Loss) | ||||||
Accumulated other comprehensive income | [1] | 267,981 | 194,532 | 363,020 | $ 96,921 | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, Net of Tax | [1] | (104,594) | 99,871 | |||
Accumulated Other-than-Temporary Impairment | ||||||
Accumulated other comprehensive income | [1] | 424 | 3,162 | 1,974 | 3,133 | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, Net of Tax | [1] | (1,550) | 29 | |||
Accumulated Defined Benefit Plans Adjustment | ||||||
Accumulated other comprehensive income | (9,983) | (8,528) | (10,230) | (8,736) | ||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 0 | 0 | ||||
AOCI Attributable to Parent | ||||||
Accumulated other comprehensive income | 258,422 | 189,166 | $ 354,764 | $ 91,318 | ||
reclassifications out of accumulated other comprehensive income | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Net of Tax, Attributable to Parent | $ 9,802 | $ (2,052) | ||||
|
Segment Information Financial Information Conerning our Operating Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Pre-Tax Operating Income (Loss) | $ 22,505 | $ 30,073 | ||
Realized gains losses on investments net of offsets | [1] | (25,458) | 9,152 | |
Derivatives unrealized gain net of offsets | [1] | (2,582) | 1,153 | |
Net Income (Loss) Attributable to Parent | (5,535) | 40,378 | ||
Income Tax Expense (Benefit) | (3,081) | 6,276 | ||
Income Tax on Equity Income | (61) | (59) | ||
Operating Income (Loss) | (2,515) | 34,043 | ||
Operating revenues | 185,909 | 183,068 | ||
Realized gains on investments related to revenue | [1] | (25,666) | 9,289 | |
Derivative unrealized related to revenues | [1] | (24,980) | 11,199 | |
Revenues | 135,263 | 203,556 | ||
Annuity Segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Pre-Tax Operating Income (Loss) | 12,019 | 15,662 | ||
Operating revenues | 54,654 | 52,682 | ||
Life Insurance Segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Pre-Tax Operating Income (Loss) | 10,267 | 10,092 | ||
Operating revenues | 107,215 | 107,258 | ||
Corporate and Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Pre-Tax Operating Income (Loss) | 219 | 4,319 | ||
Operating revenues | $ 24,040 | $ 23,128 | ||
|
Investment Operations Allowance on Mortgage Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for credit losses | $ (12,261) | $ 0 |
Balance at end of period | 3,279 | |
Real Estate Loan | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for credit losses | $ (115) | $ 0 |
Investment Operations Unrealized Losses by Length of Time (Details) $ in Thousands |
Mar. 31, 2020
USD ($)
issuers
securities
|
Dec. 31, 2019
USD ($)
issuers
securities
|
||
---|---|---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities | 566 | 189 | ||
Available For Sale Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Issuers | issuers | 407 | 145 | ||
Corporate Debt Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 797,924 | $ 114,520 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (83,568) | (2,476) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 39,182 | 84,719 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (19,623) | (13,055) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 837,106 | 199,239 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | [1] | $ (103,191) | $ (15,531) | |
percent of total | 60.70% | 69.50% | ||
Residential mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 283,851 | $ 68,743 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (13,927) | (1,435) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,956 | 6,941 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (1,004) | (494) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 288,807 | 75,684 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | [1] | $ (14,931) | $ (1,929) | |
percent of total | 8.80% | 8.60% | ||
Commercial mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 27,094 | $ 46,537 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (3,344) | (1,266) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 2,610 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | 0 | (147) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 27,094 | 49,147 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | [1] | $ (3,344) | $ (1,413) | |
percent of total | 2.00% | 6.30% | ||
Other asset backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 494,386 | $ 112,462 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (35,401) | (519) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 81,185 | 102,439 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (12,804) | (2,095) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 575,571 | 214,901 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | [1] | $ (48,205) | $ (2,614) | |
percent of total | 28.30% | 11.70% | ||
United States Government and agencies | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 0 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 2,494 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (5) | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,494 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | [1] | $ (5) | ||
percent of total | 0.00% | |||
State, municipal and other government | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 8,389 | $ 19,367 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (56) | (379) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 2,602 | 5,936 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (377) | (487) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 10,991 | 25,303 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | [1] | $ (433) | $ (866) | |
percent of total | 0.20% | 3.90% | ||
Debt Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 1,611,644 | $ 361,629 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (136,296) | (6,075) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 127,925 | 205,139 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (33,808) | (16,283) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,739,569 | 566,768 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | [1] | $ (170,104) | $ (22,358) | |
percent of total | 100.00% | 100.00% | ||
Corporate Debt Securities | Energy Commodities and Service | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 208,000 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (55,400) | |||
Corporate Debt Securities | Consumer non-cyclical sector | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 100,500 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (11,400) | |||
|
Fair Values Valuation of Financial Instruments by Hierarchy Levels (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
||
---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | $ 7,617,165 | $ 7,702,628 | ||
Other investments | 7,666 | 34,181 | ||
Assets held in separate accounts | 525,582 | 645,881 | ||
Reported Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | 36,116 | 31,211 | ||
Future policy benefits - index product embedded derivatives | 4,373,739 | 4,270,073 | ||
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | 5,661 | 31,469 | ||
Cash and short-term investments | 47,104 | 29,142 | ||
Reinsurance recoverable | 1,655 | 2,327 | ||
Assets held in separate accounts | 525,582 | 645,881 | ||
Assets, Fair Value Disclosure | 8,276,776 | 8,503,274 | ||
Other liabilities | 86 | 254 | ||
Total liabilities | 61,157 | 76,600 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | 0 | 0 | ||
Cash and short-term investments | 47,104 | 29,142 | ||
Reinsurance recoverable | 0 | 0 | ||
Assets held in separate accounts | 525,582 | 645,881 | ||
Assets, Fair Value Disclosure | 587,770 | 696,871 | ||
Future policy benefits - index product embedded derivatives | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | 5,661 | 31,469 | ||
Cash and short-term investments | 0 | 0 | ||
Reinsurance recoverable | 1,655 | 2,327 | ||
Assets held in separate accounts | 0 | 0 | ||
Assets, Fair Value Disclosure | 7,660,755 | 7,770,353 | ||
Future policy benefits - index product embedded derivatives | 0 | 0 | ||
Other liabilities | 86 | 254 | ||
Total liabilities | 86 | 254 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | 0 | 0 | ||
Cash and short-term investments | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Assets held in separate accounts | 0 | 0 | ||
Assets, Fair Value Disclosure | 28,251 | 36,050 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 61,071 | 76,346 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 28,251 | 36,050 | ||
Debt Securities | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 7,617,165 | 7,702,628 | ||
Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 3,344 | 4,821 | ||
Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 7,592,428 | 7,668,684 | ||
Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 21,393 | 29,123 | ||
Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 3,657,323 | 3,778,950 | ||
Corporate Debt Securities | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 3,657,323 | 3,778,950 | ||
Corporate Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Corporate Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 3,647,867 | 3,772,362 | ||
Corporate Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 9,456 | 6,588 | ||
Corporate Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 9,456 | 6,588 | ||
Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 653,767 | 672,388 | ||
Residential mortgage-backed securities | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities available-for-sale | 653,767 | 672,388 | ||
Residential mortgage-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities available-for-sale | 0 | 0 | ||
Residential mortgage-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities available-for-sale | 653,767 | 672,388 | ||
Residential mortgage-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities available-for-sale | 0 | 0 | ||
Commercial mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,141,642 | 1,045,473 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities available-for-sale | 1,141,642 | 1,045,473 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities available-for-sale | 0 | 0 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities available-for-sale | 1,134,437 | 1,032,693 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities available-for-sale | 7,205 | 12,780 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 7,205 | 12,780 | ||
Other asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 698,940 | 714,521 | ||
Other asset backed securities | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities available-for-sale | 698,940 | 714,521 | ||
Other asset backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities available-for-sale | 0 | 0 | ||
Other asset backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities available-for-sale | 694,208 | 704,766 | ||
Other asset backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage-backed securities available-for-sale | 4,732 | 9,755 | ||
Other asset backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 4,732 | 9,755 | ||
United States Government and agencies | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 14,204 | 14,123 | ||
United States Government and agencies | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 14,204 | 14,123 | ||
United States Government and agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 3,344 | 4,821 | ||
United States Government and agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 10,860 | 9,302 | ||
United States Government and agencies | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
State, municipal and other government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,451,289 | 1,477,173 | ||
State, municipal and other government | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,451,289 | 1,477,173 | ||
State, municipal and other government | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
State, municipal and other government | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,451,289 | 1,477,173 | ||
State, municipal and other government | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Non-redeemable preferred stock | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 67,869 | 74,800 | ||
Non-redeemable preferred stock | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Non-redeemable preferred stock | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 61,011 | 67,873 | ||
Non-redeemable preferred stock | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 6,858 | 6,927 | ||
Common Stock | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | [1] | 11,740 | 17,027 | |
Common Stock | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 11,740 | 17,027 | ||
Common Stock | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Common Stock | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Private Equity Funds, US | Common Stock | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 1,100 | 1,700 | ||
Private Equity Funds, US | Common Stock | Fair Value Measured at Net Asset Value Per Share | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments Net Asset Value | 9,000 | 8,400 | ||
Index Product Embedded Derivatives | Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Future policy benefits - index product embedded derivatives | 61,071 | 76,346 | ||
Index Product Embedded Derivatives | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Future policy benefits - index product embedded derivatives | $ 61,071 | $ 76,346 | ||
|
Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings In the normal course of business, we may be involved in litigation in which damages are alleged that are substantially in excess of contractual policy benefits or certain other agreements. We are not aware of any claims threatened or pending against FBL Financial Group, Inc. or any of its subsidiaries for which a material loss is reasonably possible. Commitments for Partnership Investments and Private Corporate Bond Investments At March 31, 2020, we have unfunded investment commitments to limited partnerships and limited liability companies of $58.2 million and privately placed corporate securities commitments of $5.8 million.
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Significant Accounting Policies Level 2 (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements of FBL Financial Group, Inc. (we or the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. Our financial statements include all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of our financial position and results of operations. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020, especially when considering the risks and uncertainties associated with the novel coronavirus ("COVID-19") and the impact it may have on our business, results of operations and financial condition. We encourage you to refer to the notes to our consolidated financial statements included in Item 8 of our Form 10-K for the year ended December 31, 2019 for a complete description of our material accounting policies. Also included in the Form 10-K is a description of areas of judgments and estimates and other information necessary to understand our financial position and results of operations. Our estimates and assumptions could change in the future as more information becomes known about the impact of COVID-19. Our results of operations and financial condition may also be impacted by evolving regulatory, legislative and accounting interpretations and guidance.
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New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements
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Financing Receivable, Allowance for Credit Losses, Policy or Methodology Change[Policy Text Block] | Allowance for Credit Losses As discussed above, effective January 1, 2020 we were required to apply new accounting guidance for the treatment of potential credit losses within certain financial instruments. Our accounting policies and practices as they pertain to the financial instruments impacted by this new guidance are as follows: Fixed Maturities When the fair value of a fixed maturity security is below its amortized cost, an impairment has occurred. To the extent we decide to sell the security or are required to sell the security prior to its recovery of fair value, a charge is taken to realized investment losses as reported within the Consolidated Statement of Operations, and the amortized cost basis of the security is adjusted for the loss. Under the accounting guidance we followed in 2019 and prior periods, to the extent we had no plan or requirement to sell an impaired security, but believed the impairment was other-than-temporary, we similarly recorded a charge to realized investment losses and the amortized cost basis of the security was adjusted for the loss. Beginning in 2020, to the extent an unrealized loss is due to credit, an allowance for credit loss is recognized within the Consolidated Statement of Operations. While fixed maturities are reported net of the allowance for credit losses in our Consolidated Balance Sheet, the allowance is not considered an adjustment to the amortized cost of the security. Accordingly the allowance may increase or decrease over the life of the security based on changes in the assumptions used to determine the allowance, with such changes reported as “Change in the allowance for credit losses on investments” within the Consolidated Statement of Operations. Fixed maturity securities are written-off to realized investment losses if we determine that no additional payments of principal or interest will be received. The factors considered in determining whether an allowance for credit losses is required are consistent with those considered in determining whether an other-than-temporary impairment loss had occurred under the accounting guidance we followed during 2019 and prior periods as discussed in Item 8 of our Form 10-K for the year ended December 31, 2019. We have elected the policy to exclude accrued interest receivable from our allowance calculation since uncollectible accrued interest will continue to be evaluated for collectability and written off as warranted. Mortgage Loans The allowance for credit losses on our mortgage loan investments is based on an estimate of credit losses that may occur over the life of the loans, which differs from the accounting guidance applied in 2019 and prior periods, which was based on incurred losses of individual loans. In determining the allowance, we segregate our mortgage loans with a similar risk profile based on an internal loan rating. Loss factors based on the potential frequency and severity of credit losses at different points in time of the portfolio life are applied to future cash flows to estimate the allowance for credit losses. In determining the loss factors, we consider the potential severity and likelihood of loss based on our historical loan loss experience along with that of other similar organizations as well as economic forecasts. We have elected the policy to exclude accrued interest receivable from our allowance calculation since uncollectible accrued interest will continue to be evaluated for collectability and written off as warranted. Mortgage loans are reported in our Consolidated Balance Sheet net of the allowance for credit losses. Changes in the allowance are reported within the Consolidated Statement of Operations as “Changes in allowance for credit losses on investments.” See Note 2 for further information. Reinsurance Recoverable The allowance for credit losses on our reinsurance recoverable is based on an estimate of credit losses that may occur over the life of the underlying ceded insurance business, which differs from the accounting guidance applied in 2019 and prior periods, which was based on incurred losses. We develop loss factors which are applied to the amounts due from each reinsurer which considers the potential severity and likelihood of loss based on the relative risk profile of each reinsurer, our internal loss history and those of other organizations, along with economic forecasts. We also consider other sources of information regarding individual reinsurers, as applicable, including amounts past-due according to the terms of the reinsurance contracts. Reinsurance recoverable assets are reported in our Consolidated Balance Sheet net of the allowance for credit losses. Amounts deemed to be uncollectible are written off against the allowance. Changes in the allowance are reported within the Consolidated Statement of Operations as “Underwriting, acquisition and insurance expenses.”
No reinsurance recoverables were considered past due as of March 31, 2020.
|
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Income Tax, Policy [Policy Text Block] | Income Taxes Income taxes for interim reporting periods are generally recognized based on an estimated annual effective tax rate which is computed based on earnings forecasts for the year. During the first quarter of 2020, the spread of COVID-19 negatively impacted the U.S. economy, causing unusual market volatility which has impacted our first quarter earnings. At this time, we are unable to forecast our 2020 earnings primarily due to uncertainty regarding COVID-19’s potential impact on future investment credit losses. Accordingly, for purposes of estimating tax expense for the first quarter of 2020, we are applying an estimated year-to-date effective tax rate, which is based on estimated taxable earnings incurred through the end of the quarter. We expect to return to an estimated annual effective tax rate at such time as earnings can be reasonably forecast.
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Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements of FBL Financial Group, Inc. (we or the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. Our financial statements include all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of our financial position and results of operations. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020, especially when considering the risks and uncertainties associated with the novel coronavirus ("COVID-19") and the impact it may have on our business, results of operations and financial condition. We encourage you to refer to the notes to our consolidated financial statements included in Item 8 of our Form 10-K for the year ended December 31, 2019 for a complete description of our material accounting policies. Also included in the Form 10-K is a description of areas of judgments and estimates and other information necessary to understand our financial position and results of operations. Our estimates and assumptions could change in the future as more information becomes known about the impact of COVID-19. Our results of operations and financial condition may also be impacted by evolving regulatory, legislative and accounting interpretations and guidance. New Accounting Pronouncements
Allowance for Credit Losses As discussed above, effective January 1, 2020 we were required to apply new accounting guidance for the treatment of potential credit losses within certain financial instruments. Our accounting policies and practices as they pertain to the financial instruments impacted by this new guidance are as follows: Fixed Maturities When the fair value of a fixed maturity security is below its amortized cost, an impairment has occurred. To the extent we decide to sell the security or are required to sell the security prior to its recovery of fair value, a charge is taken to realized investment losses as reported within the Consolidated Statement of Operations, and the amortized cost basis of the security is adjusted for the loss. Under the accounting guidance we followed in 2019 and prior periods, to the extent we had no plan or requirement to sell an impaired security, but believed the impairment was other-than-temporary, we similarly recorded a charge to realized investment losses and the amortized cost basis of the security was adjusted for the loss. Beginning in 2020, to the extent an unrealized loss is due to credit, an allowance for credit loss is recognized within the Consolidated Statement of Operations. While fixed maturities are reported net of the allowance for credit losses in our Consolidated Balance Sheet, the allowance is not considered an adjustment to the amortized cost of the security. Accordingly the allowance may increase or decrease over the life of the security based on changes in the assumptions used to determine the allowance, with such changes reported as “Change in the allowance for credit losses on investments” within the Consolidated Statement of Operations. Fixed maturity securities are written-off to realized investment losses if we determine that no additional payments of principal or interest will be received. The factors considered in determining whether an allowance for credit losses is required are consistent with those considered in determining whether an other-than-temporary impairment loss had occurred under the accounting guidance we followed during 2019 and prior periods as discussed in Item 8 of our Form 10-K for the year ended December 31, 2019. We have elected the policy to exclude accrued interest receivable from our allowance calculation since uncollectible accrued interest will continue to be evaluated for collectability and written off as warranted. Mortgage Loans The allowance for credit losses on our mortgage loan investments is based on an estimate of credit losses that may occur over the life of the loans, which differs from the accounting guidance applied in 2019 and prior periods, which was based on incurred losses of individual loans. In determining the allowance, we segregate our mortgage loans with a similar risk profile based on an internal loan rating. Loss factors based on the potential frequency and severity of credit losses at different points in time of the portfolio life are applied to future cash flows to estimate the allowance for credit losses. In determining the loss factors, we consider the potential severity and likelihood of loss based on our historical loan loss experience along with that of other similar organizations as well as economic forecasts. We have elected the policy to exclude accrued interest receivable from our allowance calculation since uncollectible accrued interest will continue to be evaluated for collectability and written off as warranted. Mortgage loans are reported in our Consolidated Balance Sheet net of the allowance for credit losses. Changes in the allowance are reported within the Consolidated Statement of Operations as “Changes in allowance for credit losses on investments.” See Note 2 for further information. Reinsurance Recoverable The allowance for credit losses on our reinsurance recoverable is based on an estimate of credit losses that may occur over the life of the underlying ceded insurance business, which differs from the accounting guidance applied in 2019 and prior periods, which was based on incurred losses. We develop loss factors which are applied to the amounts due from each reinsurer which considers the potential severity and likelihood of loss based on the relative risk profile of each reinsurer, our internal loss history and those of other organizations, along with economic forecasts. We also consider other sources of information regarding individual reinsurers, as applicable, including amounts past-due according to the terms of the reinsurance contracts. Reinsurance recoverable assets are reported in our Consolidated Balance Sheet net of the allowance for credit losses. Amounts deemed to be uncollectible are written off against the allowance. Changes in the allowance are reported within the Consolidated Statement of Operations as “Underwriting, acquisition and insurance expenses.”
No reinsurance recoverables were considered past due as of March 31, 2020. Income Taxes Income taxes for interim reporting periods are generally recognized based on an estimated annual effective tax rate which is computed based on earnings forecasts for the year. During the first quarter of 2020, the spread of COVID-19 negatively impacted the U.S. economy, causing unusual market volatility which has impacted our first quarter earnings. At this time, we are unable to forecast our 2020 earnings primarily due to uncertainty regarding COVID-19’s potential impact on future investment credit losses. Accordingly, for purposes of estimating tax expense for the first quarter of 2020, we are applying an estimated year-to-date effective tax rate, which is based on estimated taxable earnings incurred through the end of the quarter. We expect to return to an estimated annual effective tax rate at such time as earnings can be reasonably forecast.
|
Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Revenues: | ||
Interest sensitive product charges | $ 31,720 | $ 31,266 |
Traditional life insurance premiums | 49,308 | 49,392 |
Net investment income | 74,917 | 109,640 |
Net realized capital gains (losses) | (13,401) | 10,157 |
Change in allowance for credit losses on investments | (12,261) | 0 |
Other than Temporary Impairment Losses | 0 | (869) |
Other income | 4,980 | 3,970 |
Total revenues | 135,263 | 203,556 |
Benefits and expenses: | ||
Interest sensitive product benefits | 44,351 | 70,596 |
Traditional life insurance benefits | 46,208 | 46,675 |
Policyholder dividends | 2,529 | 2,534 |
Underwriting, acquisition and insurance expenses | 39,421 | 36,189 |
Interest expense | 1,213 | 1,212 |
Other expenses | 7,421 | 6,250 |
Total benefits and expenses | 141,143 | 163,456 |
Income before equity method investments, income taxes and noncontrolling interest | (5,880) | 40,100 |
Income tax benefit (expense) | 3,081 | (6,276) |
Equity income, net of related income taxes | 228 | 220 |
Net income (loss) | (2,571) | 34,044 |
Net (income) loss attributable to noncontrolling interest | 56 | (1) |
Net income (loss) attributable to FBL Financial Group, Inc. | $ (2,515) | $ 34,043 |
Earnings (loss) per common share | $ (0.10) | $ 1.37 |
Earnings (loss) per common share - assuming dilution | $ (0.10) | $ 1.37 |
Earnings per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
|
Investment Operations Available-for-sale Securities (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Jan. 01, 2020 |
Dec. 31, 2019 |
||
---|---|---|---|---|---|
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | $ 7,115,265 | $ 7,015,269 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | [1] | 684,150 | 709,717 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | [1] | (170,104) | (22,358) | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | (12,146) | $ 0 | |||
Available-for-sale Securities | 7,617,165 | 7,702,628 | |||
Debt Securities, Available-for-sale, Net Unrealized Gains, related to changes in fair value subsequent to the impairment date, included in AOCI | 500 | 2,500 | |||
Corporate Debt Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 3,460,539 | 3,376,432 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | [1] | 312,121 | 418,049 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | [1] | (103,191) | (15,531) | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | (12,146) | ||||
Available-for-sale Securities | 3,657,323 | 3,778,950 | |||
Residential mortgage-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 624,574 | 626,663 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | [1] | 44,124 | 47,654 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | [1] | (14,931) | (1,929) | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | 0 | ||||
Available-for-sale Securities | 653,767 | 672,388 | |||
Commercial mortgage-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 977,147 | 969,453 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | [1] | 167,839 | 77,433 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | [1] | (3,344) | (1,413) | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | 0 | ||||
Available-for-sale Securities | 1,141,642 | 1,045,473 | |||
Other asset backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 742,954 | 697,390 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | [1] | 4,191 | 19,745 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | [1] | (48,205) | (2,614) | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | 0 | ||||
Available-for-sale Securities | 698,940 | 714,521 | |||
United States Government and agencies | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 10,829 | 12,417 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | [1] | 3,375 | 1,711 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | [1] | 0 | (5) | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | 0 | ||||
Available-for-sale Securities | 14,204 | 14,123 | |||
State, municipal and other government | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 1,299,222 | 1,332,914 | |||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | [1] | 152,500 | 145,125 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | [1] | (433) | (866) | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | 0 | ||||
Available-for-sale Securities | 1,451,289 | $ 1,477,173 | |||
Available-for-sale Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Accrued Investment Income | $ 72,400 | ||||
|
Stockholders Equity Dividends table (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Class of Stock [Line Items] | ||
Cash dividends per common share | $ 2.00 | $ 1.98 |
Cash dividends per preferred share | $ 0.0075 | $ 0.0075 |
Payment Of Special Cash Dividend | $ 37.0 | $ 37.0 |
Regular quarterly cash dividend | ||
Class of Stock [Line Items] | ||
Cash dividends per common share | $ 0.50 | $ 0.48 |
Special cash dividend | ||
Class of Stock [Line Items] | ||
Cash dividends per common share | $ 1.50 | $ 1.50 |
Fair Values Valuation of Financial Instruments not reported at fair value (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage loans | $ 988,854 | $ 1,011,678 |
Policy loans | 202,227 | 201,589 |
Other investments | 7,666 | 34,181 |
Deposit Contracts, Liabilities | 293,016 | 296,915 |
Short-term Debt | 10,000 | 0 |
Liabilities related to separate accounts | 525,582 | 645,881 |
Portion at Other than Fair Value Measurement | Fair Value, Measurements, Recurring | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage loans | 1,006,459 | 1,059,073 |
Policy loans | 285,733 | 256,787 |
Other investments | 36,572 | 31,749 |
Total assets | 1,328,764 | 1,347,609 |
Future policy benefits | 4,379,568 | 4,381,863 |
Supplemental contracts without life contingencies, fair value disclosure | 297,351 | 309,601 |
Advance premiums and other deposits | 245,971 | 245,480 |
Short term debt, fair value disclosure | 10,000 | |
Long-term debt | 67,822 | 84,438 |
Liabilities related to separate accounts | 524,537 | 644,691 |
Total liabilities | 5,525,249 | 5,666,073 |
Reported Value Measurement | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage loans | 988,854 | 1,011,678 |
Policy loans | 202,227 | 201,589 |
Other investments | 36,116 | 31,211 |
Total assets | 1,227,197 | 1,244,478 |
Future policy benefits | 4,373,739 | 4,270,073 |
Deposit Contracts, Liabilities | 293,016 | 296,915 |
Advance premiums and other deposits | 245,971 | 245,480 |
Short-term Debt | 10,000 | |
Long-term debt | 97,000 | 97,000 |
Liabilities related to separate accounts | 525,582 | 645,881 |
Total liabilities | 5,545,308 | 5,555,349 |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Other investments | 0 | 0 |
Future policy benefits | 0 | 0 |
Fair Value, Inputs, Level 1 | Portion at Other than Fair Value Measurement | Fair Value, Measurements, Recurring | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other investments | 0 | 0 |
Total assets | 0 | 0 |
Future policy benefits | 0 | 0 |
Supplemental contracts without life contingencies, fair value disclosure | 0 | 0 |
Advance premiums and other deposits | 0 | 0 |
Short term debt, fair value disclosure | 0 | |
Long-term debt | 0 | 0 |
Liabilities related to separate accounts | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Other investments | 5,661 | 31,469 |
Future policy benefits | 0 | 0 |
Fair Value, Inputs, Level 2 | Portion at Other than Fair Value Measurement | Fair Value, Measurements, Recurring | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other investments | 34,301 | 29,534 |
Total assets | 34,301 | 29,534 |
Future policy benefits | 0 | 0 |
Supplemental contracts without life contingencies, fair value disclosure | 0 | 0 |
Advance premiums and other deposits | 0 | 0 |
Short term debt, fair value disclosure | 0 | |
Long-term debt | 0 | 0 |
Liabilities related to separate accounts | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Other investments | 0 | 0 |
Fair Value, Inputs, Level 3 | Portion at Other than Fair Value Measurement | Fair Value, Measurements, Recurring | ||
Financial Instruments Not Reported at Fair Value [Line Items] | ||
Mortgage loans | 1,006,459 | 1,059,073 |
Policy loans | 285,733 | 256,787 |
Other investments | 2,271 | 2,215 |
Total assets | 1,294,463 | 1,318,075 |
Future policy benefits | 4,379,568 | 4,381,863 |
Supplemental contracts without life contingencies, fair value disclosure | 297,351 | 309,601 |
Advance premiums and other deposits | 245,971 | 245,480 |
Short term debt, fair value disclosure | 10,000 | |
Long-term debt | 67,822 | 84,438 |
Liabilities related to separate accounts | 524,537 | 644,691 |
Total liabilities | $ 5,525,249 | $ 5,666,073 |
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