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Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities that are measured at fair value on a recurring basis
The following tables set forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated:

 September 30, 2020
 TotalLevel 1Level 2Level 3
 (In thousands)
Debt securities, available for sale$3,410,656 — 3,410,656 — 
Equity securities18,610 18,610 — — 
Derivatives, index options93,367 — — 93,367 
Other invested assets1 1 — — 
Total assets$3,522,634 18,611 3,410,656 93,367 
Policyholder account balances (a)$116,802 — — 116,802 
Other liabilities (b)4,951 — — 4,951 
Total liabilities$121,753 — — 121,753 

During the three and nine months ended September 30, 2020, the Company made no transfers into or out of Levels 1, 2 or 3.
 December 31, 2019
 TotalLevel 1Level 2Level 3
 (In thousands)
Debt securities, available for sale$3,356,945 — 3,356,945 — 
Equity securities23,594 23,594 — — 
Derivatives, index options157,588 — — 157,588 
Other invested assets2 2 — — 
Total assets$3,538,129 23,596 3,356,945 157,588 
Policyholder account balances (a)$155,902 — — 155,902 
Other liabilities (c)15,301 — — 15,301 
Total liabilities$171,203 — — 171,203 

(a)  Represents the fair value of certain product-related embedded derivatives that were recorded at fair value.
(b)  Represents the liability for share-based compensation.
(c)  Represents the liability for share-based compensation and the contingent consideration for businesses acquired.
Schedule of assets by pricing source and fair value hierarchy level
The following tables present, by pricing source and fair value hierarchy level, the Company's assets that are measured at fair value on a recurring basis:

 September 30, 2020
 TotalLevel 1Level 2Level 3
 (In thousands)
Debt securities, available for sale:    
Priced by third-party vendors$3,410,656 — 3,410,656 — 
Priced internally— — — — 
Subtotal3,410,656 — 3,410,656 — 
Equity securities, available for sale:    
Priced by third-party vendors18,610 18,610 — — 
Priced internally— — — — 
Subtotal18,610 18,610 — — 
Derivatives, index options:    
Priced by third-party vendors93,367 — — 93,367 
Priced internally— — — — 
Subtotal93,367 — — 93,367 
Other invested assets:
Priced by third-party vendors1 1 — — 
Priced internally— — — — 
Subtotal1 1 — — 
Total$3,522,634 18,611 3,410,656 93,367 
Percent of total100.0 %0.5 %96.8 %2.7 %
 December 31, 2019
 TotalLevel 1Level 2Level 3
 (In thousands)
Debt securities, available for sale:    
Priced by third-party vendors$3,356,945 — 3,356,945 — 
Priced internally— — — — 
Subtotal3,356,945 — 3,356,945 — 
Equity securities, available for sale:    
Priced by third-party vendors23,594 23,594 — — 
Priced internally— — — — 
Subtotal23,594 23,594 — — 
Derivatives, index options:    
Priced by third-party vendors157,588 — — 157,588 
Priced internally— — — — 
Subtotal157,588 — — 157,588 
Other invested assets:
Priced by third-party vendors2 2 — — 
Priced internally— — — — 
Subtotal2 2 — — 
Total$3,538,129 23,596 3,356,945 157,588 
Percent of total100.0 %0.7 %94.8 %4.5 %
Schedule of significant unobservable inputs for fair value measurements
The following tables provide additional information about fair value measurements for which significant unobservable (Level 3) inputs were utilized to determine fair value.

For the Three Months Ended September 30, 2020
AssetsOther Liabilities
Derivatives, Index OptionsTotal AssetsPolicyholder Account BalancesStock OptionsContingent ConsiderationTotal Other Liabilities
 (In thousands)
Beginning balance, July 1, 2020$66,738 66,738 87,573 5,497 — 93,070 
Total realized and unrealized gains (losses):
Included in net earnings31,520 31,520 34,119 (546)— 33,573 
Included in other comprehensive income— — — — — 
Purchases, sales, issuances and settlements, net:
Purchases11,426 11,426 11,427 — — 11,427 
Sales— — — — — — 
Issuances— — — — — — 
Settlements(16,317)(16,317)(16,317)— — (16,317)
Transfers into (out of) Level 3— — — — — — 
Balance at end of period$93,367 93,367 116,802 4,951 — 121,753 
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period:
Net investment income$50,636 50,636 — — — — 
Benefits and expenses— — 50,636 (546)— 50,090 
Total$50,636 50,636 50,636 (546)— 50,090 
For the Three Months Ended September 30, 2019
AssetsOther Liabilities
Derivatives, Index OptionsTotal AssetsPolicyholder Account BalancesStock OptionsContingent ConsiderationTotal Other Liabilities
 (In thousands)
Beginning balance, July 1, 2019$89,900 89,900 100,638 7,991 3,871 112,500 
Total realized and unrealized gains (losses):
Included in net earnings3,296 3,296 (3,534)1,462 94 (1,978)
Included in other comprehensive income— — — — — — 
Purchases, sales, issuances and settlements, net:
Purchases19,872 19,872 19,872 — — 19,872 
Sales— — — — — — 
Issuances— — — — — — 
Settlements(6,704)(6,704)(6,704)— — (6,704)
Transfers into (out of) Level 3— — — — — — 
Balance at end of period$106,364 106,364 110,272 9,453 3,965 123,690 
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period:
Net investment income$(2,020)(2,020)— — — — 
Benefits and expenses— — (2,020)1,462 94 (464)
Total$(2,020)(2,020)(2,020)1,462 94 (464)
For the Nine Months Ended September 30, 2020
AssetsOther Liabilities
Derivatives, Index OptionsTotal AssetsPolicyholder Account BalancesStock OptionsContingent ConsiderationTotal Other Liabilities
 (In thousands)
Beginning balance, January 1, 2020$157,588 157,588 155,902 11,225 4,076 171,203 
Total realized and unrealized gains (losses):
Included in net earnings(34,865)(34,865)(9,744)(4,395)(4,076)(18,215)
Included in other comprehensive income— — — — — — 
Purchases, sales, issuances and settlements, net:
Purchases50,287 50,287 50,287 — — 50,287 
Sales— — — — — — 
Issuances— — — — — — 
Settlements(79,643)(79,643)(79,643)(1,879)— (81,522)
Transfers into (out of) Level 3— — — — — — 
Balance at end of period$93,367 93,367 116,802 4,951 — 121,753 
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period:
Net investment income$6,966 6,966 — — — — 
Benefits and expenses— — 6,966 (4,395)(4,076)(1,505)
Total$6,966 6,966 6,966 (4,395)(4,076)(1,505)
For the Nine Months Ended September 30, 2019
AssetsOther Liabilities
Derivatives, Index OptionsTotal AssetsPolicyholder Account BalancesStock OptionsContingent ConsiderationTotal Other Liabilities
 (In thousands)
Beginning balance, January 1, 2019$14,684 14,684 44,781 11,923 — 56,704 
Total realized and unrealized gains (losses):
Included in net earnings63,127 63,127 36,938 52 265 37,255 
Included in other comprehensive income— — — — — — 
Purchases, sales, issuances and settlements, net:
Purchases56,494 56,494 56,494 — — 56,494 
Sales— — — — — — 
Issuances— — — — 3,700 3,700 
Settlements(27,941)(27,941)(27,941)(2,522)— (30,463)
Transfers into (out of) Level 3— — — — — — 
Balance at end of period$106,364 106,364 110,272 9,453 3,965 123,690 
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period:
Net investment income$42,794 42,794 — — — — 
Benefits and expenses— — 42,794 52 265 43,111 
Total$42,794 42,794 42,794 52 265 43,111 
Schedule of quantitative information of Level 3 assets
The following table presents the valuation method for financial assets and liabilities categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments:

 September 30, 2020
 Fair ValueValuation TechniqueUnobservable InputRange (Weighted Average)
 (In thousands)
Assets:
Derivatives, index options$93,367 Broker pricesImplied volatility
12.96% - 53.69% (19.74%)
Total assets$93,367 
Liabilities:
Policyholder account balances$116,802 Deterministic cash flow modelProjected option cost
0.0% - 38.69% (5.18%)
Share based compensation4,951 Black-Scholes modelExpected term
1.2 to 9.1 years
Expected volatility32.85%
Total liabilities$121,753 

 December 31, 2019
 Fair ValueValuation TechniqueUnobservable InputRange (Weighted Average)
 (In thousands)
Assets:
Derivatives, index options$157,588 Broker pricesImplied volatility
13.10% - 19.90% (15.25%)
Total assets$157,588 
Liabilities:
Policyholder account balances$155,902 Deterministic cash flow modelProjected option cost
0.0% - 17.55% (3.14%)
Share based compensation11,225 Black-Scholes modelExpected term
1.9 to 10 years
Expected volatility22.19%
Contingent consideration on businesses acquired4,076 Probabilistic MethodDiscount rate10.0%
Projected renewal premium
$57.2 - $82.4 million ($71.9)
Total liabilities$171,203 
Schedule of carrying amounts and fair values of the company's financial instruments
The carrying amounts and fair values of the Company's financial instruments are as follows:

September 30, 2020
 Fair Value Hierarchy Level
Carrying
Values		Fair
Values		Level 1Level 2Level 3
 (In thousands)
ASSETS    
Debt securities held to maturity$6,822,053 7,378,399 — 7,378,399 — 
Debt securities available for sale3,410,656 3,410,656 — 3,410,656 — 
Cash and cash equivalents507,025 507,025 507,025 — — 
Mortgage loans302,715 303,910 — — 303,910 
Real estate33,927 48,547 — — 48,547 
Policy loans75,714 128,615 — — 128,615 
Other loans19,712 20,004 — — 20,004 
Derivatives, index options93,367 93,367 — — 93,367 
Equity securities18,610 18,610 18,610 — — 
Life interest in Libbie Shearn Moody Trust9,230 12,775 — — 12,775 
Other investments4,514 22,581 1 — 22,580 
LIABILITIES
Deferred annuity contracts$6,697,569 5,422,599 — — 5,422,599 
Immediate annuity and supplemental contracts417,663 449,676 — — 449,676 
Contingent consideration on businesses acquired— — — — — 
December 31, 2019
 Fair Value Hierarchy Level
Carrying
Values		Fair
Values		Level 1Level 2Level 3
 (In thousands)
ASSETS    
Debt securities held to maturity$7,106,245 7,407,703 — 7,407,703 — 
Debt securities available for sale3,356,945 3,356,945 — 3,356,945 — 
Cash and cash equivalents253,524 253,524 253,524 — — 
Mortgage loans272,422 270,931 — — 270,931 
Real estate34,588 57,204 — — 57,204 
Policy loans80,008 123,650 — — 123,650 
Other loans13,547 13,698 — — 13,698 
Derivatives, index options157,588 157,588 — — 157,588 
Equity securities23,594 23,594 23,594 — — 
Life interest in Libbie Shearn Moody Trust9,230 12,775 — — 12,775 
Other investments197 16,182 2 — 16,180 
LIABILITIES
Deferred annuity contracts (1)$7,014,833 5,931,352 — — 5,931,352 
Immediate annuity and supplemental contracts400,465 422,931 — — 422,931 
Contingent consideration on businesses acquired4,076 4,076 — — 4,076 
(1) Revised to correct for an adjustment related to the understatement of reserve liabilities of $15.0 million. See Note 1.