Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of the Company's fair value hierarchy for recurring basis assets and liabilities

	December 31, 2014
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
United States Government and government agencies and authorities	$	19,475	$	0		$	19,475		$	0
State, municipalities and political subdivisions	45,788		0			45,788			0
Foreign governments	21,824		0			21,824			0
Asset-backed	734		0			734			0
Commercial mortgage-backed	3,896		0			3,694			202
Residential mortgage-backed	72,026		0			72,026			0
Corporate	2,514,945		0			2,492,920			22,025
Equity securities:
Common stocks	414		414			0			0
Non-redeemable preferred stocks	135,332		0			134,332			1,000
Short-term investments	64,104		61,150		(b)	2,954		(c)	0
Collateral held/pledged under securities agreements	33,541		30,315		(b)	3,226		(c)	0
Cash equivalents	1		1		(b)	0			0
Other assets	692		0			0			692		(d)
Assets held in separate accounts	1,683,739		1,645,964		(a)	37,775		(c)	0
Total financial assets	$	4,596,511	$	1,737,844		$	2,834,748		$	23,919

Financial Liabilities
Liabilities related to separate accounts	$	1,683,739	$	1,645,964	(a)	$	37,775	(c)	$	0

	December 31, 2013
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
United States Government and government agencies and authorities	$	22,831	$	0		$	22,831		$	0
State, municipalities and political subdivisions	48,544		0			48,544			0
Foreign governments	24,453		0			24,453			0
Asset-backed	851		0			851			0
Commercial mortgage-backed	5,537		0			5,238			299
Residential mortgage-backed	77,742		0			76,858			884
Corporate	2,412,526		0			2,389,402			23,124
Equity securities:
Common stocks	418		418			0			0
Non-redeemable preferred stocks	99,848		0			98,400			1,448
Short-term investments	64,457		64,407		(b)	50			0
Collateral held/pledged under securities agreements	32,832		29,678		(b)	3,154		(c)	0
Cash equivalents	10,501		10,501		(b)	0			0
Other assets	2,016		0			0			2,016		(d)
Assets held in separate accounts	1,714,839		1,660,079		(a)	54,760		(c)	0
Total financial assets	$	4,517,395	$	1,765,083		$	2,724,541		$	27,771

Financial Liabilities
Liabilities related to separate accounts	$	1,714,839	$	1,660,079	(a)	$	54,760	(c)	$	0

(a)

Mainly includes mutual funds.

(b)

Mainly includes money market funds.

(c)

Mainly includes fixed maturity securities.

(d)

Mainly includes the Consumer Price Index Cap Derivatives (“CPI Caps”).

Summary of the change in balance sheet carrying value associated with Level 3 financial assets carried at fair value

	Year Ended December 31, 2014
	Balance, beginning of period		Total (losses) gains (realized/ unrealized) included in earnings (1)			Net unrealized (losses) gains included in other comprehensive income (2)			Purchases		Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Fixed Maturity Securities
Commercial mortgage-backed	$	299	$	0		$	(9	)	$	0	$	(88	)	$	0	$	0		$	202
Residential mortgage-backed	884		0			0			0		0			0		(884		)	0
Corporate	23,124		(117		)	471			4,733		(1,653		)	217		(4,750		)	22,025
Equity Securities
Non-redeemable preferred stocks	1,448		134			(134		)	0		(448		)	0		0			1,000
Other assets	2,016		(1,324		)	0			0		0			0		0			692
Total level 3 assets	$	27,771	$	(1,307	)	$	328		$	4,733	$	(2,189	)	$	217	$	(5,634	)	$	23,919

	Year Ended December 31, 2013
	Balance, beginning of period		Total (losses) gains (realized/ unrealized) included in earnings (1)			Net unrealized losses included in other comprehensive income (2)			Purchases		Sales			Transfers in (3)		Transfers out (3)			Balance, end of period
Fixed Maturity Securities
Foreign governments	$	569	$	0		$	(17	)	$	0	$	0		$	0	$	(552	)	$	0
Commercial mortgage-backed	638		5			(11		)	0		(333		)	0		0			299
Residential mortgage-backed	1,141		(8		)	(26		)	0		(223		)	0		0			884
Corporate	32,376		1,462			(1,803		)	1,597		(4,700		)	2,085		(7,893		)	23,124
Equity Securities
Non-redeemable preferred stocks	10		7			(81		)	2,306		(1,173		)	389		(10		)	1,448
Other assets	5,110		(3,094		)	0			0		0			0		0			2,016
Total level 3 assets	$	39,844	$	(1,628	)	$	(1,938	)	$	3,903	$	(6,429	)	$	2,474	$	(8,455	)	$	27,771

(1)

Included as part of net realized gains on investments in the consolidated statement of operations.

(2)

Included as part of change in unrealized gains on securities in the consolidated statement of comprehensive income.

(3)

Transfers are primarily attributable to changes in the availability of observable market information and re-evaluation of the observability of pricing inputs.

Schedule of carrying value, fair value amount and hierarchy level of the financial instruments that are not recognized or are not carried at fair value

	December 31, 2014
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	499,814	$	569,754	$	0	$	0	$	569,754
Policy loans	11,663		11,663		11,663		0		0
Other investments	944		944		0		0		944
Total financial assets	$	512,421	$	582,361	$	11,663	$	0	$	570,698

Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	227,240	$	255,472	$	0	$	0	$	255,472
Obligation under securities agreements	42,941		42,941		42,941		0		0
Total financial liabilities	$	270,181	$	298,413	$	42,941	$	0	$	255,472

	December 31, 2013
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	562,368	$	632,820	$	0	$	0	$	632,820
Policy loans	12,461		12,461		12,461		0		0
Total financial assets	$	574,829	$	645,281	$	12,461	$	0	$	632,820

Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	236,508	$	250,660	$	0	$	0	$	250,660
Obligation under securities agreements	42,229		42,229		42,229		0		0
Total financial liabilities	$	278,737	$	292,889	$	42,229	$	0	$	250,660

(1) Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the table above.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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