XML 1045 R32.htm IDEA: XBRL DOCUMENT v3.3.1.900
Fair Value Disclosures (Tables)
 12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
Schedule of the Company's Fair Value Hierarchy for Recurring Basis Assets and Liabilities
The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014. The amounts presented below for Collateral held/pledged under securities agreements, Cash equivalents, Other assets and Assets and Liabilities held in separate accounts differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. The fair value amount and the majority of the associated levels presented for Assets and Liabilities held in separate accounts are received directly from third parties.
 
December 31, 2015
 
Total
 
Level 1
 
Level 2
 
Level 3
Financial Assets
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
United States Government and government
 agencies and authorities
$
2,053

 
$
—

 
 
$
2,053

 
 
$
—

 
State, municipalities and political subdivisions
38,740

 
—

 
 
38,740

 
 
—

 
Foreign governments
17,211

 
—

 
 
17,211

 
 
—

 
Asset-backed
612

 
—

 
 
612

 
 
—

 
Commercial mortgage-backed
1,079

 
—

 
 
977

 
 
102

 
Residential mortgage-backed
70,950

 
—

 
 
70,950

 
 
—

 
Corporate
2,316,276

 
—

 
 
2,289,652

 
 
26,624

 
Equity securities:
 
 
 
 
 
 
 
 
 
 
Common stocks
453

 
453

 
 
—

 
 
—

 
Non-redeemable preferred stocks
157,629

 
—

 
 
156,504

 
 
1,125

 
Short-term investments
90,497

 
90,497

(b)
 
—

 
 
—

 
Cash equivalents
54,887

 
54,887

(b)
 
—

 
 
—

 
Other assets
398

 
—

 
 
—

 
 
398

(d)
Assets held in separate accounts
1,595,505

 
1,535,267

(a)
 
60,238

(c)
 
—

 
Total financial assets
$
4,346,290

 
$
1,681,104

 
 
$
2,636,937

 
 
$
28,249

 
Financial Liabilities
 
 
 
 
 
 
 
 
 
 
Liabilities related to separate accounts
$
1,595,505

 
$
1,535,267

(a)
 
$
60,238

(c)
 
$
—

 
 
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

 
$
—

 
 
$
19,475

 
 
$
—

 
State, municipalities and political subdivisions
45,788

 
—

 
 
45,788

 
 
—

 
Foreign governments
21,824

 
—

 
 
21,824

 
 
—

 
Asset-backed
734

 
—

 
 
734

 
 
—

 
Commercial mortgage-backed
3,896

 
—

 
 
3,694

 
 
202

 
Residential mortgage-backed
72,026

 
—

 
 
72,026

 
 
—

 
Corporate
2,514,945

 
—

 
 
2,492,920

 
 
22,025

 
Equity securities:
 
 
 
 
 
 
 
 
 
 
Common stocks
414

 
414

 
 
—

 
 
—

 
Non-redeemable preferred stocks
135,332

 
—

 
 
134,332

 
 
1,000

 
Short-term investments
64,104

 
61,150

(b)
 
2,954

(c)
 
—

 
Collateral held/pledged under securities agreements
33,541

 
30,315

(b)
 
3,226

(c)
 
—

 
Cash equivalents
1

 
1

(b)
 
—

 
 
—

 
Other assets
692

 
—

 
 
—

 
 
692

(d)
Assets held in separate accounts
1,683,739

 
1,645,964

(a)
 
37,775

(c)
 
—

 
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)
 
$
—

 
(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
The following tables summarize the change in balance sheet carrying value associated with Level 3 financial assets carried at fair value during the years ended December 31, 2015 and 2014:
 
Year Ended December 31, 2015
 
Balance,
beginning
of period
 
Total
losses
(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
$
202

 
$
—

 
$
(6
)
 
$
—

 
$
(94
)
 
$
—

 
$
—

 
$
102

Corporate
22,025

 
(19
)
 
(1,029
)
 
—

 
(1,318
)
 
17,112

 
(10,147
)
 
26,624

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-redeemable preferred
 stocks
1,000

 
—

 
125

 
—

 
—

 
—

 
—

 
1,125

Other assets
692

 
(294
)
 
—

 
—

 
—

 
—

 
—

 
398

Total level 3 assets
$
23,919

 
$
(313
)
 
$
(910
)
 
$
—

 
$
(1,412
)
 
$
17,112

 
$
(10,147
)
 
$
28,249

 
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

 
$
—

 
$
(9
)
 
$
—

 
$
(88
)
 
$
—

 
$
—

 
$
202

Residential mortgage-backed
884

 
—

 
—

 
—

 
—

 
—

 
(884
)
 
—

Corporate
23,124

 
(117
)
 
471

 
4,733

 
(1,653
)
 
217

 
(4,750
)
 
22,025

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-redeemable preferred
 stocks
1,448

 
134

 
(134
)
 
—

 
(448
)
 
—

 
—

 
1,000

Other assets
2,016

 
(1,324
)
 
—

 
—

 
—

 
—

 
—

 
692

Total level 3 assets
$
27,771

 
$
(1,307
)
 
$
328

 
$
4,733

 
$
(2,189
)
 
$
217

 
$
(5,634
)
 
$
23,919

(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
The following tables disclose the carrying value, fair value amount and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets:
 
December 31, 2015
 
 
 
Fair Value
 
Carrying
 Value
 
Total
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Commercial mortgage loans on real estate
$
420,569

 
$
443,678

 
$
—

 
$
—

 
$
443,678

Policy loans
10,031

 
10,031

 
10,031

 
—

 
—

Other investments
365

 
365

 
—

 
—

 
365

Total financial assets
$
430,965

 
$
454,074

 
$
10,031

 
$
—

 
$
444,043

Financial liabilities:
 
 
 
 
 
 
 
 
 
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)
$
220,053

 
$
240,124

 
$
—

 
$
—

 
$
240,124

 
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

 
$
—

 
$
—

 
$
569,754

Policy loans
11,663

 
11,663

 
11,663

 
—

 
—

Other investments
944

 
944

 
—

 
—

 
944

Total financial assets
$
512,421

 
$
582,361

 
$
11,663

 
$
—

 
$
570,698

Financial liabilities:

 

 

 

 

Policy reserves under investment products
 (Individual and group annuities, subject to
 discretionary withdrawal) (1)
$
227,240

 
$
255,472

 
$
—

 
$
—

 
$
255,472

Obligation under securities agreements
42,941

 
42,941

 
42,941

 
—

 
—

Total financial liabilities
$
270,181

 
$
298,413

 
$
42,941

 
$
—

 
$
255,472

(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.