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Investments (Tables)
12 Months Ended
Dec. 31, 2014
Investments  
Schedule of cost or amortized cost, gross unrealized gains and losses, fair value and other-than-temporary impairment ("OTTI") of fixed maturity and equity securities

 

 

 

 

December 31, 2014

 

 

 

Cost or
Amortized
Cost

 

Gross
Unrealized
Gains

 

Gross
Unrealized
Losses

 

Fair
Value

 

OTTI in
AOCI (a)

 

Fixed maturity securities:

 

 

 

 

 

 

 

 

 

 

 

United States Government and government agencies and authorities

 

$

608

 

$

189

 

$

0

 

$

797

 

$

0

 

States, municipalities and political subdivisions

 

26,614

 

2,304

 

0

 

28,918

 

0

 

Foreign governments

 

255

 

121

 

0

 

376

 

0

 

Commercial mortgage-backed

 

470

 

29

 

0

 

499

 

0

 

Residential mortgage-backed

 

6,653

 

1,059

 

(11

)

7,701

 

481

 

Corporate

 

50,962

 

8,343

 

(127

)

59,178

 

0

 

Total fixed maturity securities

 

$

85,562

 

$

12,045

 

$

(138

)

$

97,469

 

$

481

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

Non-redeemable preferred stocks

 

$

7,333

 

$

678

 

$

(43

)

$

7,968

 

$

0

 

 

 

 

December 31, 2013

 

 

 

Cost or
Amortized
Cost

 

Gross
Unrealized
Gains

 

Gross
Unrealized
Losses

 

Fair
Value

 

OTTI in
AOCI (a)

 

Fixed maturity securities:

 

 

 

 

 

 

 

 

 

 

 

United States Government and government agencies and authorities

 

$

573

 

$

164

 

$

0

 

$

737

 

$

0

 

States, municipalities and political subdivisions

 

26,026

 

2,396

 

0

 

28,422

 

0

 

Foreign governments

 

255

 

83

 

0

 

338

 

0

 

Commercial mortgage-backed

 

693

 

59

 

0

 

752

 

0

 

Residential mortgage-backed

 

6,993

 

711

 

(53

)

7,651

 

404

 

Corporate

 

60,446

 

6,182

 

(449

)

66,179

 

0

 

Total fixed maturity securities

 

$

94,986

 

$

9,595

 

$

(502

)

$

104,079

 

$

404

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

Non-redeemable preferred stocks

 

$

6,901

 

$

470

 

$

(171

)

$

7,200

 

$

0

 

 

(a)

Represents the amount of OTTI recognized in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.

 

Schedule of cost or amortized cost and fair value of fixed maturity securities by contractual maturity

 

 

 

Cost or
Amortized
Cost

 

Fair Value

 

 

 

 

 

 

 

Due in one year or less

 

$

2,550 

 

$

2,623 

 

Due after one year through five years

 

14,379 

 

15,839 

 

Due after five years through ten years

 

21,857 

 

24,188 

 

Due after ten years

 

39,653 

 

46,619 

 

Total

 

78,439 

 

89,269 

 

Commercial mortgage-backed

 

470 

 

499 

 

Residential mortgage-backed

 

6,653 

 

7,701 

 

Total

 

$

85,562 

 

$

97,469 

 

 

Schedule of major categories of net investment income

 

 

 

 

Years Ended December 31,

 

 

 

2014

 

2013

 

2012

 

 

 

 

 

 

 

 

 

Fixed maturity securities

 

$

4,892

 

$

5,251

 

$

5,735

 

Equity securities

 

477

 

462

 

412

 

Commercial mortgage loans on real estate

 

1,681

 

1,496

 

1,604

 

Policy loans

 

12

 

16

 

13

 

Other investments

 

20

 

31

 

42

 

Total investment income

 

7,082

 

7,256

 

7,806

 

Investment expenses

 

(248

)

(256

)

(245

)

Net investment income

 

$

6,834

 

$

7,000

 

$

7,561

 

 

Summary of proceeds from sales of available-for-sale securities and the gross realized gains and gross realized losses

 

 

 

 

For the Years Ended December 31,

 

 

 

2014

 

2013

 

2012

 

Proceeds from sales

 

$

6,303 

 

$

15,065 

 

$

8,748 

 

Gross realized gains

 

404 

 

929 

 

471 

 

Gross realized losses

 

106 

 

264 

 

77 

 

 

Schedule of net realized gains (losses), including other-than-temporary impairments

 

 

 

Years Ended December 31,

 

 

 

2014

 

2013

 

2012

 

Net realized gains related to sales and other:

 

 

 

 

 

 

 

Fixed maturity securities

 

$

248

 

$

430

 

$

309

 

Equity securities

 

3

 

295

 

62

 

Commercial mortgage loans on real estate

 

12

 

113

 

0

 

Total net realized gains related to sales and other

 

263

 

838

 

371

 

Net realized losses related to other-than-temporary impairments:

 

 

 

 

 

 

 

Equity securities

 

0

 

0

 

(6

)

Total net realized losses related to other-than-temporary impairments

 

0

 

0

 

(6

)

Total net realized gains

 

$

263

 

$

838

 

$

365

 

 

Schedule of credit loss impairments on fixed maturity securities for which a portion of the OTTI loss was recognized in AOCI

 

 

 

 

Years Ended December 31,

 

 

 

2014

 

2013

 

2012

 

Balance, beginning of year

 

$

446

 

$

1,496

 

$

1,573

 

Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security

 

(132

)

(11

)

(6

)

Reductions for credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period

 

238

 

(1,039

)

(71

)

Balance, end of year

 

$

552

 

$

446

 

$

1,496

 

 

Schedule of gross unrealized losses on fixed maturity securities and equity securities

 

 

 

 

December 31, 2014

 

 

 

Less than 12 months

 

12 Months or More

 

Total

 

 

 

Fair
Value

 

Unrealized
Losses

 

Fair
Value

 

Unrealized
Losses

 

Fair
Value

 

Unrealized
Losses

 

Fixed maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed

 

$

0

 

$

0

 

$

526

 

$

(11

)

$

526

 

$

(11

)

Corporate

 

683

 

(39

)

697

 

(88

)

1,380

 

(127

)

Total fixed maturity securities

 

$

683

 

$

(39

)

$

1,223

 

$

(99

)

$

1,906

 

$

(138

)

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-redeemable preferred stocks

 

$

615

 

$

(28

)

$

235

 

$

(15

)

$

850

 

$

(43

)

 

 

 

December 31, 2013

 

 

 

Less than 12 months

 

12 Months or More

 

Total

 

 

 

Fair
Value

 

Unrealized
Losses

 

Fair
Value

 

Unrealized
Losses

 

Fair
Value

 

Unrealized
Losses

 

Fixed maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed

 

$

2,174

 

$

(29

)

$

520

 

$

(24

)

$

2,694

 

$

(53

)

Corporate

 

7,394

 

(426

)

225

 

(23

)

7,619

 

(449

)

Total fixed maturity securities

 

$

9,568

 

$

(455

)

$

745

 

$

(47

)

$

10,313

 

$

(502

)

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-redeemable preferred stocks

 

$

2,966

 

$

(171

)

$

0

 

$

0

 

$

2,966

 

$

(171

)

 

Schedule of cost or amortized cost and fair value of available-for-sale fixed maturity securities in an unrealized loss position

 

The cost or amortized cost and fair value of available for sale fixed maturity securities in an unrealized loss position at December 31, 2014, by contractual maturity, is shown below.

 

 

 

Cost or
Amortized Cost

 

Fair Value

 

Due after one year through five years

 

$

224 

 

$

221 

 

Due after ten years

 

1,283 

 

1,159 

 

Total

 

1,507 

 

1,380 

 

Residential mortgage-backed

 

537 

 

526 

 

Total

 

$

2,044 

 

$

1,906 

 

 

Summary of loan-to-value and average debt-service coverage ratios

 

 

December 31, 2014

 

Loan-to-Value

 

Carrying
Value

 

% of
Gross
Mortgage
Loans

 

Debt-
Service
Coverage
ratio

 

70% and less

 

$

15,073

 

74.8

%

2.28

 

71 – 80%

 

2,266

 

11.2

%

1.15

 

81 – 95%

 

2,819

 

14.0

%

1.15

 

Gross commercial mortgage loans

 

20,158

 

100.0

%

2.00

 

Less valuation allowance

 

(386

)

 

 

 

 

Net commercial mortgage loans

 

$

19,772

 

 

 

 

 

 

 

 

December 31, 2013

 

Loan-to-Value

 

Carrying
Value

 

% of
Gross
Mortgage
Loans

 

Debt-
Service
Coverage
ratio

 

70% and less

 

$

17,166

 

67.7

%

2.41

 

71 – 80%

 

2,972

 

11.7

%

1.14

 

81 – 95%

 

5,219

 

20.6

%

1.16

 

Gross commercial mortgage loans

 

25,357

 

100.0

%

2.01

 

Less valuation allowance

 

(398

)

 

 

 

 

Net commercial mortgage loans

 

$

24,959