XML 85 R66.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 8. Reinsurance (Details) - USD ($)
$ in Thousands
1 Months Ended
Jul. 31, 2015
Sep. 30, 2015
Dec. 31, 2014
Material Nonrecurring Reinsurance Transactions On July 31, 2015, Madison National Life and Standard Security Life together entered into a coinsurance and sale agreement with an unaffiliated reinsurer, National Guardian Life Insurance Company (“NGL”), to: (i) cede substantially all of their individual life and annuity policy blocks currently in run-off; and (ii) sell the related infrastructure associated with the administration of such policies. The Company transferred $207,964,000 of cash to NGL, net of the aggregate consideration of $42,000,000 for the coinsurance and sale transaction. As a result of this transaction, the Company: (i) recorded $234,740,000 of estimated amounts due from reinsurers; (ii) recorded a $31,192,000 decrease in deferred acquisition costs associated with the ceded policies; (iii) recorded a $9,866,000 decrease in policy loans; (iv) recorded $7,686,000 of estimated costs of reinsurance (included in other assets) which will be amortized over the life of the underlying reinsured contracts; and (v) recognized a $5,053,000 pre-tax gain (included in other income) on the sale of the assets associated with the administration of the ceded policies, net of disposal costs. The ceding of reinsurance does not discharge the primary liability of the original insurer to the insured. However, as a result of this transaction, it is anticipated that approximately $76,000,000 of the aforementioned life and annuity reserves will be assigned and transferred to the reinsurer, pending regulatory approval, by the end of 2015, contractually relieving the Company of the liability with regards to those policies.    
Due from reinsurers   $ 481,813 $ 278,242
Other assets   $ 54,637 $ 57,126
Coinsurance And Sale Transaction With National Guardian Life Insurance Company Member      
Payment To Reinsurer For Coinsurance And Sale Transaction $ 207,964    
Purchase Price Received 42,000    
Due from reinsurers 234,740    
Deferred Policy Acquisition Costs, Period Increase (Decrease) (31,192)    
Increase (Decrease) in Policy Loans Receivable (9,866)    
Other assets 7,686    
Coinsurance And Sale Transaction With National Guardian Life Insurance Company Member | Life and Annuity Insurance Product Line | Scenario, Plan      
Liability for Future Policy Benefits, Other Increase (Decrease) $ (76,000)