Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Carrying Value and Estimated Fair Value of Financial Instruments

A summary of the carrying value and estimated fair value of our financial instruments at December 31, 2012 and 2011 is as follows:

	December 31, 2012				December 31, 2011
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	1,681	$	1,655	$	4,161	$	4,143
Available-for-sale securities	2,808,078		2,808,078		2,697,248		2,697,248
Trading securities	13,353		13,353		13,454		13,454
Equity securities:
Available-for-sale securities	177,127		177,127		157,683		157,683
Trading securities	2,018		2,018		1,768		1,768
Mortgage loans	5,037		4,633		5,219		4,829
Policy loans	6,671		6,671		7,209		7,209
Other long-term investments	30,028		30,028		20,574		20,574
Short-term investments	800		800		1,100		1,100
Cash and cash equivalents	107,466		107,466		144,527		144,527
Accrued investment income	30,375		30,375		32,219		32,219
Liabilities
Policy reserves
Annuity (accumulations) (1)	$	1,043,866	$	983,579	$	1,074,661	$	999,534
Annuity (benefit payments)	139,213		93,701		133,921		94,465
Debt	—		—		45,000		45,000

(1) Annuity accumulations represent deferred annuity contracts that are currently earning interest.

Financial Instruments Measured at Fair Value on Recurring Basis

The following tables present the categorization for our financial instruments measured at fair value on a recurring basis in our Consolidated Balance Sheets at December 31, 2012 and 2011:

			Fair Value Measurements
Description	December 31, 2012		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury	$	38,821	$	—	$	38,821	$	—
U.S. government agency	45,928		—		45,928		—
States, municipalities and political subdivisions	794,505		—		793,755		750
Foreign bonds	219,160		—		218,602		558
Public utilities	247,726		—		247,726		—
Corporate bonds
Energy	179,731		—		179,731		—
Industrials	293,663		—		290,766		2,897
Consumer goods and services	202,975		—		201,633		1,342
Health care	122,685		—		122,685		—
Technology, media and telecommunications	130,371		—		130,371		—
Financial services	283,860		—		271,991		11,869
Mortgage-backed securities	28,807		—		28,807		—
Collateralized mortgage obligations	214,584		—		214,584		—
Asset-backed securities	4,886		—		2,398		2,488
Redeemable preferred stocks	376		376		—		—
Total Available-For-Sale Fixed Maturities	$	2,808,078	$	376	$	2,787,798	$	19,904
Equity securities
Common stocks
Public utilities	$	14,416	$	14,416	$	—	$	—
Energy	11,997		11,997		—		—
Industrials	32,684		32,658		26		—
Consumer goods and services	18,879		18,879		—		—
Health care	18,081		18,081		—		—
Technology, media and telecommunications	10,427		10,427		—		—
Financial services	68,492		64,800		56		3,636
Nonredeemable preferred stocks	2,151		1,906		245		—
Total Available-for-Sale Equity Securities	$	177,127	$	173,164	$	327	$	3,636
Total Available-for-Sale Securities	$	2,985,205	$	173,540	$	2,788,125	$	23,540
TRADING
Bonds
Foreign bonds	$	1,379	$	—	$	1,379	$	—
Corporate bonds
Industrials	1,299		—		1,299		—
Consumer goods and services	1,532		—		1,532		—
Health care	1,824		—		1,824		—
Technology, media and telecommunications	2,250		—		2,250		—
Financial services	1,486		—		1,486		—
Redeemable preferred stocks	3,583		3,583		—		—

Equity securities - health care	303		303		—		—
Nonredeemable preferred stocks	1,715		1,715		—		—
Total Trading Securities	$	15,371	$	5,601	$	9,770	$	—
Short-Term Investments	$	800	$	800	$	—	$	—
Money Market Accounts	$	45,613	$	45,613	$	—	$	—
Total Assets Measured at Fair Value	$	3,046,989	$	225,554	$	2,797,895	$	23,540

			Fair Value Measurements
Description	December 31, 2011		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities
Bonds
U.S. Treasury	$	43,951	$	—	$	43,951	$	—
U.S. government agency	96,395		—		96,395		—
States, municipalities and political subdivisions	748,107		—		747,227		880
Foreign bonds	214,815		—		213,979		836
Public utilities	270,071		—		270,071		—
Corporate bonds
Energy	197,192		—		197,192		—
Industrials	295,677		—		292,780		2,897
Consumer goods and services	212,174		—		210,759		1,415
Health care	115,671		—		115,671		—
Technology, media and telecommunications	112,948		—		112,948		—
Financial services	265,301		—		249,328		15,973
Mortgage-backed securities	35,390		—		35,390		—
Collateralized mortgage obligations	82,851		—		82,851		—
Asset-backed securities	6,296		—		5,981		315
Redeemable preferred stocks	409		409		—		—
Total Available-For-Sale Fixed Maturities	$	2,697,248	$	409	$	2,674,523	$	22,316
Equity securities
Common stocks
Public utilities	$	14,735	$	14,735	$	—	$	—
Energy	12,210		12,210		—		—
Industrials	28,556		28,556		—		—
Consumer goods and services	18,564		18,564		—		—
Health care	15,698		15,698		—		—
Technology, media and telecommunications	10,018		10,018		—		—
Financial services	56,090		52,564		—		3,526
Nonredeemable preferred stocks	1,812		1,554		258		—
Total Available-for-Sale Equity Securities	$	157,683	$	153,899	$	258	$	3,526
Total Available-for-Sale Securities	$	2,854,931	$	154,308	$	2,674,781	$	25,842
TRADING
Bonds
Foreign bonds	$	2,906	$	—	$	2,906	$	—
Corporate bonds
Industrials	1,443		—		1,443		—
Consumer goods and services	1,059		—		1,059		—
Health care	1,450		—		1,450		—
Technology, media and telecommunications	1,458		—		1,458		—

Financial services	2,063		—		2,063		—
Redeemable preferred stocks	3,075		1,659		1,416		—
Equity securities - health care	290		290
Nonredeemable preferred stocks	1,478		1,478
Total Trading Securities	$	15,222	$	3,427	$	11,795	$	—
Short-Term Investments	$	1,100	$	1,100	$	—	$	—
Money Market Accounts	$	62,899	$	62,899	$	—	$	—
Total Assets Measured at Fair Value	$	2,934,152	$	221,734	$	2,686,576	$	25,842

Changes in Fair Value of Level 3 Securities

The following table provides a summary of the changes in fair value of our Level 3 securities for 2012:

	States, municipalities and political subdivisions			Foreign bonds			Corporate bonds			Asset-backed securities			Equities			Total
Balance at January 1, 2012	$	880		$	836		$	20,285		$	315		$	3,526		$	25,842
Realized gains (1)	—			—			646			—			—			646
Unrealized gains (losses) (1)	—			7			(352		)	(13		)	(23		)	(381		)
Purchases	—			—			5			—			179			184
Disposals	(130		)	(285		)	(4,476		)	(121		)	(50		)	(5,062		)
Transfers in	—			—			—			2,307			52			2,359
Transfers out	—			—			—			—			(48		)	(48		)
Balance at December 31, 2012	$	750		$	558		$	16,108		$	2,488		$	3,636		$	23,540

(1) Realized gains (losses) are recorded as a component of earnings whereas unrealized gains (losses) are recorded as a component of comprehensive income.

The fixed maturities reported as disposals relate to the receipt of principal on calls or sinking fund bonds, in accordance with the indentures. The reported transfers in is the result of stale pricing due to a lack of current trading activity for the underlying securities.

The following table provides a summary of the changes in fair value of our Level 3 securities for 2011:

(In Thousands)	States, municipalities and political subdivisions			Foreign bonds			Public utilities		Corporate bonds			Asset-backed securities			Equities			Total
Balance at January 1, 2011	$	1,001		$	1,115		35		$	23,479		$	—		$	1,535		$	27,165
Realized gains (1)	—			—			—		—			12			10			22
Unrealized gains (losses) (1)	—			7			(2	)	178			1			(8		)	176
Purchases	—			—			—		106			1,437			3,271			4,814
Disposals	(121		)	(286		)	(33	)	(3,278		)	(1,135		)	(1,282		)	(6,135		)
Transfers in	—			—			—		16,956			—			—			16,956
Transfers out	—			—			—		(17,156		)	—			—			(17,156		)
Balance at December 31, 2011	$	880		$	836		—		$	20,285		$	315		$	3,526		$	25,842

(1) Realized gains (losses) are recorded as a component of earnings whereas unrealized gains (losses) are recorded as a component of comprehensive income.