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Investments (Tables)

3 Months Ended

Mar. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity and Equity Securities Available-for-Sale

The following table presents the fixed maturity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate fixed maturity securities. Included within fixed maturity securities are structured securities including residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”).



	March 31, 2017																				December 31, 2016
	Amortized Cost				Gross Unrealized												Estimated Fair Value				Amortized Cost				Gross Unrealized												Estimated Fair Value
	Amortized Cost				Gains				Temporary Losses				OTTI Losses				Estimated Fair Value				Amortized Cost				Gains				Temporary Losses				OTTI Losses				Estimated Fair Value
	(In thousands)
Fixed maturity securities:
U.S. corporate	$	717,002			$	21,341			$	6,249			$	—			$	732,094			$	709,694			$	20,400			$	8,283			$	—			$	721,811
U.S. government and agency	404,528				10,219				9,859				—				404,888				410,504				9,560				13,519				—				406,545
RMBS	216,834				2,541				2,122				—				217,253				238,676				2,033				2,322				—				238,387
Foreign corporate	237,844				3,396				6,874				—				234,366				237,412				2,998				8,070				—				232,340
CMBS	179,639				3,114				1,368				—				181,385				177,719				2,724				1,487				—				178,956
State and political subdivision	46,790				4,426				507				—				50,709				52,739				4,345				764				—				56,320
ABS	26,666				101				111				—				26,656				26,695				152				177				—				26,670
Foreign government	16,056				492				131				—				16,417				17,215				543				273				—				17,485
Total fixed maturity securities	$	1,845,359			$	45,630			$	27,221			$	—			$	1,863,768			$	1,870,654			$	42,755			$	34,895			$	—			$	1,878,514

Available-for-sale fixed maturity securities by contractual maturity date

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2017:



	Due in One Year or Less				Due After One Year Through Five Years				Due After Five Years Through Ten Years				Due After Ten Years				Structured Securities				Total Fixed Maturity Securities
	(In thousands)
Amortized cost	$	16,943			$	390,698			$	508,270			$	506,309			$	423,139			$	1,845,359
Estimated fair value	$	17,206			$	401,578			$	508,264			$	511,426			$	425,294			$	1,863,768

Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale

The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at:



	March 31, 2017																December 31, 2016
	Less than 12 Months								Equal to or Greater than 12 Months								Less than 12 Months								Equal to or Greater than 12 Months
	Estimated Fair Value				Gross Unrealized Losses				Estimated Fair Value				Gross Unrealized Losses				Estimated Fair Value				Gross Unrealized Losses				Estimated Fair Value				Gross Unrealized Losses
	(Dollars in thousands)
Fixed maturity securities
U.S. corporate	$	223,324			$	4,950			$	17,757			$	1,299			$	250,559			$	6,667			$	17,745			$	1,616
U.S. government and agency	201,323				9,859				—				—				342,150				13,519				—				—
RMBS	105,822				2,016				5,773				106				137,470				2,089				6,822				233
Foreign corporate	125,659				4,193				11,031				2,681				129,093				3,541				22,965				4,529
CMBS	38,901				948				3,727				420				42,661				1,068				3,729				419
State and political subdivision	15,466				507				—				—				20,709				764				—				—
ABS	16,575				111				—				—				17,504				177				—				—
Foreign government	4,299				48				911				83				7,189				148				868				125
Total fixed maturity securities	$	731,369			$	22,632			$	39,199			$	4,589			$	947,335			$	27,973			$	52,129			$	6,922
Total number of securities in an unrealized loss position	165								28								203								35

Disclosure of Mortgage Loans Net of Valuation Allowance

Mortgage loans are summarized as follows at:



	March 31, 2017							December 31, 2016
	Carrying Value				% of Total			Carrying Value				% of Total
	(Dollars in thousands)
Mortgage loans
Commercial	$	281,552			69.1	%		$	286,002			70.4	%
Agricultural	127,610				31.3			121,858				30.0
Subtotal	409,162				100.4			407,860				100.4
Valuation allowances	(1,772		)		(0.4	)		(1,775		)		(0.4	)
Total mortgage loans, net	$	407,390			100.0	%		$	406,085			100.0	%

Allowance for Credit Losses on Financing Receivables

The changes in the valuation allowance, by portfolio segment, were as follows:



		Three Months Ended March 31,
		2017												2016
		Commercial				Agricultural				Total				Commercial				Agricultural				Total
		(In thousands)
Balance, beginning of period		$	1,419			$	356			$	1,775			$	578			$	62			$	640
Provision (release)		(21		)		18				(3		)		80				—				80
Balance, end of period		$	1,398			$	374			$	1,772			$	658			$	62			$	720

Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss)

The components of net unrealized investment gains (losses), included in AOCI, were as follows:



	March 31, 2017				December 31, 2016
	(In thousands)
Fixed maturity securities	$	18,409			$	7,862
Derivatives	4,297				4,718
Subtotal	22,706				12,580
Amounts allocated from:
DAC and DSI	(9,600		)		(5,800		)
Deferred income tax benefit (expense)	(4,588		)		(2,373		)
Net unrealized investment gains (losses)	$	8,518			$	4,407

The changes in net unrealized investment gains (losses) were as follows:



	Three Months Ended March 31, 2017
	(In thousands)
Balance, beginning of period	$	4,407
Unrealized investment gains (losses) during the period	10,126
Unrealized investment gains (losses) relating to:
DAC and DSI	(3,800		)
Deferred income tax benefit (expense)	(2,215		)
Balance, end of period	$	8,518
Change in net unrealized investment gains (losses)	$	4,111

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit are presented below at estimated fair value for fixed maturity securities at:



	March 31, 2017				December 31, 2016
	(In thousands)
Invested assets on deposit (regulatory deposits)	$	1,513			$	1,507

The Components of Net Investment Income

The components of net investment income were as follows:



		Three Months Ended March 31,
		2017				2016
		(In thousands)
Investment income:
Fixed maturity securities		$	17,592			$	12,150
Mortgage loans		4,388				1,746
Cash, cash equivalents and short-term investments		37				20
Other		149				125
Subtotal		22,166				14,041
Less: Investment expenses		758				441
Net investment income		$	21,408			$	13,600

The components of net investment gains (losses)

The components of net investment gains (losses) were as follows:



		Three Months Ended March 31,
		2017				2016
	(In thousands)
Total gains (losses) on fixed maturity securities:
Total OTTI losses recognized — by sector and industry:
U.S. and foreign corporate securities — by industry:
Industrial		$	—			$	(870	)
Total U.S. and foreign corporate securities		—				(870		)
OTTI losses on fixed maturity securities recognized in earnings		—				(870		)
Fixed maturity securities — net gains (losses) on sales and disposals		(1,299		)		(798		)
Total gains (losses) on fixed maturity securities		(1,299		)		(1,668		)
Mortgage loans		(17		)		(92		)
Other		579				71
Total net investment gains (losses)		$	(737	)		$	(1,689	)

Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses

Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as shown in the table below.



	Three Months Ended March 31,
	2017				2016
	Fixed Maturity Securities
	(In thousands)
Proceeds	$	142,318			$	16,892
Gross investment gains	$	663			$	253
Gross investment losses	(1,962		)		(1,051		)
OTTI losses	—				(870		)
Net investment gains (losses)	$	(1,299	)		$	(1,668	)

Variable Interest Entity, Not Primary Beneficiary [Member]

Variable Interest Entity [Line Items]

Variable Interest Entities

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:



	March 31, 2017								December 31, 2016
	Carrying Amount				Maximum Exposure to Loss (1)				Carrying Amount				Maximum Exposure to Loss (1)
	(In thousands)
Fixed maturity securities AFS:
Structured Securities (2)	$	425,294			$	425,294			$	444,013			$	444,013
Foreign corporate	6,017				6,017				5,884				5,884
Total	$	431,311			$	431,311			$	449,897			$	449,897

______________


(1)	The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.


(2)	For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

Mortgage Loans on Real Estate [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The credit quality of commercial mortgage loans was as follows at:



	Recorded Investment
	Debt Service Coverage Ratios																% of Total
	> 1.20x				1.00x - 1.20x				< 1.00x				Total				% of Total
	(Dollars in thousands)
March 31, 2017
Loan-to-value ratios:
Less than 65%	$	255,457			$	15,431			$	999			$	271,887			96.6	%
65% to 75%	9,665				—				—				9,665				3.4
Total	$	265,122			$	15,431			$	999			$	281,552			100.0	%
December 31, 2016
Loan-to-value ratios:
Less than 65%	$	259,711			$	15,614			$	999			$	276,324			96.6	%
65% to 75%	9,678				—				—				9,678				3.4
Total	$	269,389			$	15,614			$	999			$	286,002			100.0	%

Mortgage Loans on Real Estate [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The credit quality of agricultural mortgage loans was as follows at:



	March 31, 2017							December 31, 2016
	Recorded Investment				% of Total			Recorded Investment				% of Total
	(Dollars in thousands)
Loan-to-value ratios:
Less than 65%	$	125,752			98.5	%		$	119,974			98.4	%
65% to 75%	1,858				1.5			1,884				1.6
Total	$	127,610			100.0	%		$	121,858			100.0	%