Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

The estimated fair value and hierarchy classifications for assets and liabilities that are measured at fair value on a recurring basis were as follows:

	September 30, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Fixed-maturity securities:
U.S. government and agencies	$	-	$	16,061	$	-	$	16,061
Foreign government		-		131,730		-		131,730
States and political subdivisions		-		46,459		-		46,459
Corporates		3,374		1,317,982		1,724		1,323,080
Residential mortgage-backed securities		-		83,984		1,294		85,278
Commercial mortgage-backed securities		-		108,775		-		108,775
Other asset-backed securities		-		46,321		3,470		49,791
Total fixed-maturity securities		3,374		1,751,312		6,488		1,761,174
Equity securities		41,821		5,644		74		47,539
Trading securities		-		12,259		-		12,259
Separate accounts		-		2,347,816		-		2,347,816
Total fair value assets	$	45,195	$	4,117,031	$	6,562	$	4,168,788
Fair value liabilities:
Separate accounts	$	-	$	2,347,816	$	-	$	2,347,816
Total fair value liabilities	$	-	$	2,347,816	$	-	$	2,347,816

	December 31, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
Fair value assets:
Fixed-maturity securities:
U.S. government and agencies	$	-	$	20,659	$	-	$	20,659
Foreign government		-		120,216		-		120,216
States and political subdivisions		-		40,565		-		40,565
Corporates		2,146		1,299,613		3		1,301,762
Residential mortgage-backed securities		-		100,493		732		101,225
Commercial mortgage-backed securities		-		99,986		-		99,986
Other asset-backed securities		-		47,046		-		47,046
Total fixed-maturity securities		2,146		1,728,578		735		1,731,459
Equity securities		41,341		6,450		48		47,839
Trading securities		-		5,358		-		5,358
Separate accounts		-		2,063,899		-		2,063,899
Total fair value assets	$	43,487	$	3,804,285	$	783	$	3,848,555
Fair value liabilities:
Separate accounts	$	-	$	2,063,899	$	-	$	2,063,899
Total fair value liabilities	$	-	$	2,063,899	$	-	$	2,063,899

Roll forward of Level 3 Assets Measured on Recurring Basis

The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows:

	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
	(In thousands)
Level 3 assets, beginning of period	$	717		$	862		$	783		$	1,165
Net unrealized gains (losses) included in other      comprehensive income		12			2			17			(4	)
Realized gains (losses) and accretion (amortization) recognized      in earnings, including OTTI		1			-			6			-
Purchases(1)		4,183			-			4,183			-
Sales		-			-			(3	)		-
Settlements		(25	)		(35	)		(98	)		(111	)
Transfers into Level 3		1,675			-			1,676			2
Transfers out of Level 3		(1	)		(2	)		(2	)		(225	)
Level 3 assets, end of period	$	6,562		$	827		$	6,562		$	827

⁽¹⁾ During the three and nine months ended September 30, 2016, purchases of Level 3 assets primarily consisted of newly issued fixed maturity securities in the third quarter for which observable inputs, most notably quoted prices, used to derive valuations are not yet readily available.

Carrying Value and Estimated Fair Value for Financial Instruments

The table below is a summary of the estimated fair value for financial instruments.

	September 30, 2016				December 31, 2015
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
	(In thousands)
Assets:
Fixed-maturity securities (available-for-sale)	$	1,761,174	$	1,761,174	$	1,731,459	$	1,731,459
Fixed-maturity security (held-to-maturity)		454,000		500,823		365,220		371,742
Equity securities		47,539		47,539		47,839		47,839
Trading securities		12,259		12,259		5,358		5,358
Policy loans		30,801		30,801		28,627		28,627
Deposit asset underlying 10% coinsurance agreement		198,275		198,275		181,889		181,889
Separate accounts		2,347,816		2,347,816		2,063,899		2,063,899
Liabilities:
Notes payable(1)	$	372,827	$	410,296	$	372,552	$	398,649
Surplus note(1)		453,247		498,256		364,424		371,498
Separate accounts		2,347,816		2,347,816		2,063,899		2,063,899

⁽¹⁾ Carrying value amounts shown are net of issuance costs.