Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Significant Accounting Policies [Abstract]

Deferred policy acquisition costs asset by segment

The Company’s deferred policy acquisition costs asset by segment was as follows:

	December 31,
	2013		2012
Annuity	$	170,749	$	125,437
Life		48,558		46,798
Property and casualty		26,048		24,650
Total	$	245,355	$	196,885

Adjustment to amortization expenses

The Company recorded the following adjustments to amortization expense as a result of evaluating actual experience and prospective assumptions, sometimes referred to as “unlocking”:

	Year Ended December 31,
	2013		2012		2011
Increase (decrease) to amortization:
Annuity	$	(3,700)	$	(3,836)	$	2,466
Life		126		751		1,159
Total	$	(3,574)	$	(3,085)	$	3,625

Allocation of goodwill by reporting unit

The allocation of goodwill by reporting unit is as follows:

Annuity	$	28,025
Life		9,911
Property and casualty		9,460
Total	$	47,396

Property and Equipment

The following amounts are included in Other Assets in the Consolidated Balance Sheets:

	December 31,
	2013		2012
Property and equipment	$	108,394	$	108,502
Less: accumulated depreciation		73,459		71,508
Total	$	34,935	$	36,994

Summary of guaranteed minimum death benefit

The Company has a relatively low exposure to GMDB risk as shown below.

	December 31,
	2013			2012
GMDB reserve	$	209		$	392
Aggregate in-the-money death benefits under the GMDB provision		30,422			41,990
Variable annuity contract value distribution based on GMDB feature:
No guarantee		30	%		31	%
Return of premium guarantee		64	%		63	%
Guarantee of premium roll-up at an annual rate of 3% or 5%		6	%		6	%
Total		100	%		100	%

Stock options fair value pricing model weighted-average assumptions

The fair value of options granted was estimated on the respective dates of grant using the Black-Scholes option pricing model with the weighted-average assumptions shown in the following table.

	Year Ended December 31,
	2013			2012			2011
Number of options granted		245,424			296,188			313,000
Weighted average grant date fair value of options granted	$	8.25		$	6.02		$	6.20
Weighted average assumptions:
Risk-free interest rate		1.0	%		1.0	%		2.2	%
Expected dividend yield		2.7	%		2.2	%		2.2	%
Expected life, in years		5.8			5.8			5.8
Expected volatility (based on historical volatility)		54.5	%		45.1	%		45.0	%

Computations of net income per share on both basic and diluted bases, including reconciliations of the numerators and denominators

The computations of net income per share on both basic and diluted bases, including reconciliations of the numerators and denominators, were as follows:

	Year Ended December 31,
	2013		2012		2011
Basic:
Net income for the period	$	110,893	$	103,866	$	70,506
Weighted average number of common shares
during the period (in thousands)		40,377		39,514		39,866
Net income per share - basic	$	2.75	$	2.63	$	1.77
Diluted:
Net income for the period	$	110,893	$	103,866	$	70,506
Weighted average number of common shares
during the period (in thousands)		40,377		39,514		39,866
Weighted average number of common equivalent
shares to reflect the dilutive effect of common
stock equivalent securities (in thousands):
Stock options		211		222		206
Common stock units related to deferred
compensation for Directors		-		112		114
Common stock units related to deferred
compensation for Employees		112		116		115
Restricted common stock units related to
incentive compensation		933		1,424		1,136
Total common and common equivalent shares adjusted
to calculate diluted earnings per share (in thousands)		41,633		41,388		41,437
Net income per share - diluted	$	2.66	$	2.51	$	1.70

Components of comprehensive income

The components of comprehensive income (loss) were as follows:

	Year Ended December 31,
	2013		2012		2011
Net income	$	110,893	$	103,866	$	70,506
Other comprehensive income (loss):
Change in net unrealized gains and losses on fixed
maturities and equity securities
Net unrealized holding gains and losses on fixed
maturities and equity securities arising during the period		(375,184)		204,460		281,202
Less: reclassification adjustment for net gains
included in income before income tax		22,245		27,298		37,663
Total, before tax		(397,429)		177,162		243,539
Income tax expense (benefit)		(149,019)		62,984		86,585
Total, net of tax		(248,410)		114,178		156,954
Change in net funded status of pension and     other postretirement benefit obligations
Before tax		5,645		1,276		(4,801)
Income tax expense (benefit)		2,110		345		(1,714)
Total, net of tax		3,535		931		(3,087)
Total comprehensive income (loss)	$	(133,982)	$	218,975	$	224,373

Accumulated Other Comprehensive Income (Loss)

Reflecting accounting guidance adopted prospectively effective January 1, 2013, the following table reconciles the components of accumulated other comprehensive income (loss) for the period indicated.

	Unrealized
	Gains and
	Losses on
	Fixed Maturities
	and Equity			Defined
	Securities (1)(2)			Benefit Plans (1)			Total (1)
Beginning balance, January 1, 2013		$	382,400		$	(15,311)		$	367,089
Other comprehensive income (loss) before     reclassifications			(233,951)			3,535			(230,416)
Amounts reclassified from accumulated
other comprehensive income			(14,459)			-			(14,459)
Net current-period other comprehensive income     (loss)			(248,410)			3,535			(244,875)
Ending balance, December 31, 2013		$	133,990		$	(11,776)		$	122,214

(1) All amounts are net of tax.

(2) The $22,245 pretax amount reclassified from accumulated other comprehensive income is included in net realized investment gains and losses and the $7,786 related tax expense (benefit) is included in income tax expense in the Consolidated Statement of Operations for the year ended December 31, 2013.