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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Deferred policy acquisition costs asset by segment
The Company’s deferred policy acquisition costs (“DAC”) asset by segment was as follows:
 
 
 
December 31,
 
 
 
 
2015
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
Annuity
 
$
178,300
 
 
$
143,522
 
Life
 
 
48,191
 
 
 
44,400
 
Property and casualty
 
 
26,685
 
 
 
27,160
 
Total
 
$
253,176
 
 
$
215,082
 
Adjustment to amortization expenses
The Company recorded the following adjustments to amortization expense as a result of evaluating actual experience and prospective assumptions, the impact of unlocking:
 
 
 
Year Ended December 31,
 
 
 
2015
           
           
2014
           
           
2013
 
Increase (decrease) to amortization:
 
 
 
 
 
 
 
 
 
 
 
 
Annuity
 
$
3,403
 
 
$
1,224
 
 
$
(3,700
)
Life
 
 
(34
)
 
 
(131
)
 
 
126
 
Total
 
$
3,369
 
 
$
1,093
 
 
$
(3,574
)
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,
 
 
 
 
2015
 
              
 
2014
 
 
 
 
 
 
 
 
 
Property and equipment
 
$
107,876
 
 
$
108,056
 
Less: accumulated depreciation
 
 
82,236
 
 
 
77,027
 
Total
 
$
25,640
 
 
$
31.029
 
Investment Contract And Life Policy Reserves
This table summarizes the Company’s investment contract and life policy reserves.
 
 
 
December 31,
 
 
 
 
2015
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
Investment contract reserves
 
$
4,072,102
 
 
$
3,774,457
 
Life policy reserves
 
 
1,054,740
 
 
 
1,027,814
 
Total
 
$
5,126,842
 
 
$
4,802,271
 
Summary of guaranteed minimum death benefit
The Company regularly monitors the GMDB reserve considering fluctuations in the financial market. The Company has a relatively low exposure to GMDB risk as shown below.
 
 
 
December 31,
 
 
 
 
2015
               
               
 
2014
 
 
 
 
 
 
 
 
GMDB reserve
 
$
358
 
 
$
278
 
Aggregate in-the-money death benefits under the GMDB provision
 
 
35,563
 
 
 
29,866
 
Variable annuity contract value distribution based on GMDB feature:
 
 
 
 
 
 
 
 
No guarantee
 
 
32
%
 
 
31
%
Return of premium guarantee
 
 
62
%
 
 
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 stock 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,
 
 
 
 
2015
          
          
 
2014
          
          
 
2013
 
 
 
 
 
 
 
 
 
 
 
Number of stock options granted
 
 
142,908
 
 
 
175,632
 
 
 
245,424
 
Weighted average grant date fair value of stock options granted
 
$
11.18
 
 
$
9.01
 
 
$
8.25
 
Weighted average assumptions:
 
 
 
 
 
 
 
 
 
 
 
 
Risk-free interest rate
 
 
1.7
%
 
 
1.9
%
 
 
1.0
%
Expected dividend yield
 
 
2.6
%
 
 
2.5
%
 
 
2.7
%
Expected life, in years
 
 
7.2
 
 
 
5.7
 
 
 
5.8
 
Expected volatility (based on historical volatility)
 
 
42.8
%
 
 
40.3
%
 
 
54.5
%
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,
 
 
 
 
2015
         
         
 
2014
         
         
 
2013
 
Basic:
 
 
 
 
 
 
 
 
 
 
 
 
Net income for the period
 
$
93,482
 
 
$
104,243
 
 
$
110,893
 
Weighted average number of common shares during the period (in thousands)
 
 
41,915
 
 
 
41,646
 
 
 
40,377
 
Net income per share - basic
 
$
2.23
 
 
$
2.50
 
 
$
2.75
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
 
 
 
 
 
Net income for the period
 
$
93,482
 
 
$
104,243
 
 
$
110,893
 
Weighted average number of common shares during the period (in thousands)
 
 
41,915
 
 
 
41,646
 
 
 
40,377
 
Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
Stock options
 
 
158
 
 
 
137
 
 
 
211
 
Common stock units related to deferred compensation for employees
 
 
55
 
 
 
70
 
 
 
112
 
Restricted common stock units related to incentive compensation
 
 
297
 
 
 
378
 
 
 
933
 
Total common and common equivalent shares adjusted to calculate diluted earnings per share (in thousands)
 
 
42,425
 
 
 
42,231
 
 
 
41,633
 
Net income per share - diluted
 
$
2.20
 
 
$
2.47
 
 
$
2.66
 
Components of comprehensive income
The components of comprehensive income (loss) were as follows:
 
 
 
 
Year Ended December 31,
 
 
 
 
2015
 
 
2014
 
 
2013
 
 
 
 
 
 
 
 
 
 
 
Net income
 
$
93,482
 
 
$
104,243
 
 
$
110,893
 
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
 
 
(178,035
)
 
 
264,136
 
 
 
(363,350
)
Less: reclassification adjustment for net gains included in income before income tax
 
 
11,667
 
 
 
10,943
 
 
 
22,245
 
Total, before tax
 
 
(189,702
)
 
 
253,193
 
 
 
(385,595
)
Income tax expense (benefit)
 
 
(67,315
)
 
 
89,629
 
 
 
(137,185
)
Total, net of tax
 
 
(122,387
)
 
 
163,564
 
 
 
(248,410
)
Change in net funded status of pension and other postretirement benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
 
Before tax
 
 
1,815
 
 
 
(1,810
)
 
 
5,645
 
Income tax expense (benefit)
 
 
656
 
 
 
(633
)
 
 
2,110
 
Total, net of tax
 
 
1,159
 
 
 
(1,177
)
 
 
3,535
 
Total comprehensive income (loss)
 
$
(27,746
)
 
$
266,630
 
 
$
(133,982
)
Accumulated Other Comprehensive Income (Loss)
The following table reconciles the components of accumulated other comprehensive income (loss) for the periods indicated.
 
 
 
Unrealized
 
 
 
 
 
 
 
 
 
 
 
Gains and
 
 
 
 
 
 
 
 
 
 
 
Losses on
 
 
 
 
 
 
 
 
 
 
 
Fixed Maturities
 
 
 
 
 
 
 
 
 
 
 
and Equity
 
 
 
Defined
 
 
 
 
 
 
 
Securities (1)(2)
 
 
 
Benefit Plans (1)
 
 
 
Total (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1, 2015
 
$
297,554
 
 
 
$
(12,953
)
 
 
$
284,601
 
Other comprehensive income (loss) before reclassifications
 
 
(114,803
)
 
 
 
1,159
 
 
 
 
(113,644
)
Amounts reclassified from accumulated other comprehensive income (loss)
 
 
(7,584
)
 
 
 
-
 
 
 
 
(7,584
)
Net current period other comprehensive income (loss)
 
 
(122,387
)
 
 
 
1,159
 
 
 
 
(121,228
)
Ending balance, December 31, 2015
 
$
175,167
 
 
 
$
(11,794
)
 
 
$
163,373
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1, 2014
 
$
133,990
 
 
 
$
(11,776
)
 
 
$
122,214
 
Other comprehensive income (loss) before reclassifications
 
 
170,677
 
 
 
 
(1,177
)
 
 
 
169,500
 
Amounts reclassified from accumulated other comprehensive income (loss)
 
 
(7,113
)
 
 
 
-
 
 
 
 
(7,113
)
Net current period other comprehensive income (loss)
 
 
163,564
 
 
 
 
(1,177
)
 
 
 
162,387
 
Ending balance, December 31, 2014
 
$
297,554
 
 
 
$
(12,953
)
 
 
$
284,601
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 (loss)
 
 
(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 pretax amounts reclassified from accumulated other comprehensive income, $11,667, $10,943 and $22,245, are included in net realized investment gains and losses and the related tax expenses, $4,083, $3,830 and $7,786, are included in income tax expense in the Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013, respectively.