Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Carrying Amount and Fair Value of Financial Instruments

The carrying amount and fair value of financial instruments are shown below (in thousands):

	December 31,
	2018				2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Fixed maturity securities, bonds held-to-maturity	$	8,211,449	$	8,130,084	$	7,552,959	$	7,774,353
Fixed maturity securities, bonds available-for-sale	6,215,563		6,215,563		6,145,308		6,145,308
Equity securities	1,530,228		1,530,228		1,784,226		1,784,226
Equity-indexed options	148,006		148,006		220,190		220,190
Mortgage loans on real estate, net of allowance	5,124,707		5,049,468		4,749,999		4,811,006
Policy loans	376,254		376,254		377,103		377,103
Short-term investments	206,760		206,760		658,765		658,765
Separate account assets ($905,824 and $965,575 included in fair value hierarchy)	918,369		918,369		969,764		969,764
Separately managed accounts	16,532		16,532		851		851
Total financial assets	$	22,747,868	$	22,591,264	$	22,459,165	$	22,741,566
Financial liabilities
Investment contracts	$	10,003,990	$	10,003,990	$	8,990,771	$	8,990,771
Embedded derivative liability for equity-indexed contracts	596,075		596,075		512,526		512,526
Notes payable	137,963		137,963		137,458		137,458
Separate account liabilities ($905,824 and $965,575 included in fair value hierarchy)	918,369		918,369		969,764		969,764
Total financial liabilities	$	11,656,397	$	11,656,397	$	10,610,519	$	10,610,519

Schedule of Significant Unobservable Inputs Used to Calculate Level 3 Fair Value of Embedded Derivatives within Policyholder Contract Deposits

Shown below are the significant unobservable inputs used to calculate the Level 3 fair value of the embedded derivatives within policyholder contract deposits (in millions, except range percentages):

	Fair Value					Range
	December 31,					December 31,
	2018		2017		Unobservable Input	2018	2017
Indexed Annuities	$	592.8	$	498.3	Lapse Rate	1-70%	1-66%
					Mortality Multiplier	90-100%	90-100%
					Equity Volatility	19-26%	7-30%
Indexed Life	3.3		14.2		Equity Volatility	19-26%	7-30%

Quantitative Disclosures Regarding Fair Value Hierarchy Measurements

The fair value hierarchy measurements of the financial instruments are shown below (in thousands):

	Fair Value Measurement as of December 31, 2018
	Total Fair Value		Level 1		Level 2		Level 3
Financial assets
Fixed maturity securities, bonds held-to-maturity
U.S. states and political subdivisions	$	250,899	$	—	$	250,899	$	—
Foreign governments	4,430		—		4,430		—
Corporate debt securities	7,548,829		—		7,548,829		—
Residential mortgage-backed securities	319,910		—		319,910		—
Collateralized debt securities	5,285		—		5,285		—
Other debt securities	731		—		731		—
Total bonds held-to-maturity	8,130,084		—		8,130,084		—
Fixed maturity securities, bonds available-for-sale
U.S. treasury and government	28,399		—		28,399		—
U.S. states and political subdivisions	862,030		—		862,030		—
Foreign governments	6,210		—		6,210		—
Corporate debt securities	5,283,818		—		5,279,585		4,233
Residential mortgage-backed securities	31,662		—		31,662		—
Collateralized debt securities	3,444		—		3,444		—
Total bonds available-for-sale	6,215,563		—		6,211,330		4,233
Equity securities
Common stock	1,509,186		1,509,073		—		113
Preferred stock	21,042		21,042		—		—
Total equity securities	1,530,228		1,530,115		—		113
Options	148,006		—		—		148,006
Mortgage loans on real estate	5,049,468		—		5,049,468		—
Policy loans	376,254		—		—		376,254
Short-term investments	206,760		—		206,760		—
Separate account assets	905,824		227,448		678,376		—
Separately managed accounts	16,532		—		—		16,532
Total financial assets	$	22,578,719	$	1,757,563	$	20,276,018	$	545,138
Financial liabilities
Investment contracts	$	10,003,990	$	—	$	—	$	10,003,990
Embedded derivative liability for equity-indexed contracts	596,075		—		—		596,075
Notes payable	137,963		—		—		137,963
Separate account liabilities	905,824		227,448		678,376		—
Total financial liabilities	$	11,643,852	$	227,448	$	678,376	$	10,738,028

	Fair Value Measurement as of December 31, 2017
	Total Fair Value		Level 1		Level 2		Level 3
Financial assets
Fixed maturity securities, bonds held-to-maturity
U.S. states and political subdivisions	$	279,395	$	—	$	276,450	$	2,945
Foreign governments	4,593		—		4,593		—
Corporate debt securities	7,232,327		—		7,232,327		—
Residential mortgage-backed securities	255,243		—		255,243		—
Collateralized debt securities	954		—		954		—
Other debt securities	1,841		—		1,841		—
Total bonds held-to-maturity	7,774,353		—		7,771,408		2,945
Fixed maturity securities, bonds available-for-sale
U.S. treasury and government	27,898		—		27,898		—
U.S. states and political subdivisions	897,047		—		897,047		—
Foreign governments	6,460		—		6,460		—
Corporate debt securities	5,192,927		—		5,192,927		—
Residential mortgage-backed securities	14,717		—		14,717		—
Collateralized debt securities	3,818		—		3,818		—
Other debt securities	2,441		—		2,441		—
Total bonds available-for-sale	6,145,308		—		6,145,308		—
Equity securities
Common stock	1,760,627		1,760,499		—		128
Preferred stock	23,599		23,599		—		—
Total equity securities	1,784,226		1,784,098		—		128
Options	220,190		—		—		220,190
Mortgage loans on real estate	4,811,006		—		4,811,006		—
Policy loans	377,103		—		—		377,103
Short-term investments	658,765		—		658,765		—
Separate account assets	965,575		257,209		708,366		—
Separately managed accounts	851		—		—		851
Total financial assets	$	22,737,377	$	2,041,307	$	20,094,853	$	601,217
Financial liabilities
Investment contracts	$	8,990,771	$	—	$	—	$	8,990,771
Embedded derivative liability for equity-indexed contracts	512,526		—		—		512,526
Notes payable	137,458		—		—		137,458
Separate account liabilities	965,575		257,209		708,366		—
Total financial liabilities	$	10,606,330	$	257,209	$	708,366	$	9,640,755

Financial Instruments Measured at Fair Value on Recurring Basis Using (Level 3) Inputs

For financial instruments measured at fair value on a recurring basis using Level 3 inputs during the period, a reconciliation of the beginning and ending balances is shown below (in thousands):

	Level 3
	Assets						Liability
	Investment Securities			Equity-Indexed Options			Embedded Derivative
Balance at December 31, 2015	$	20,130		$	123,007		$	242,412
Total realized and unrealized investment gains included in other comprehensive income	481			—			—
Net fair value change included in realized gains (losses)	—			—			—
Net gain for derivatives included in net investment income	—			28,400			—
Net change included in interest credited	—			—			25,239
Purchases, sales and settlements or maturities
Purchases	—			27,961			—
Sales	—			—			—
Settlements or maturities	(425		)	(22,889		)	—
Premiums less benefits	—			—			46,679
Gross transfers into Level 3	908			—			—
Gross transfers out of Level 3	(6,830		)	—			—
Balance at December 31, 2016	$	14,264		$	156,479		$	314,330
Total realized and unrealized investment gains included in other comprehensive income	(4,465		)	—			—
Net fair value change included in realized gains (losses)	—			—			—
Net gain for derivatives included in net investment income	—			90,433			—
Net change included in interest credited	—			—			98,351
Purchases, sales and settlements or maturities
Purchases	—			47,134			—
Sales	(12,436		)	(12,837		)	—
Settlements or maturities	(7,020		)	(61,019		)	—
Premiums less benefits	—			—			99,845
Carry value transfers in	15,000			—			—
Gross transfers into Level 3	382			—			—
Gross transfers out of Level 3	(5,725		)	—			—
Balance at December 31, 2017	$	—		$	220,190		$	512,526
Net loss for derivatives included in net investment income	—			(55,093		)	—
Net change included in interest credited	—			—			(17,862		)
Purchases, sales and settlements or maturities
Purchases	4,346			72,033			—
Sales	—			(18		)	—
Settlements or maturities	—			(89,106		)	—
Premiums less benefits	—			—			101,411
Balance at December 31, 2018	$	4,346		$	148,006		$	596,075