SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We have two reportable business segments in our operations: property and casualty insurance and life insurance. The property and casualty insurance segment has seven domestic locations from which it conducts its business. The life insurance segment operates from our home office. Because all of our insurance is sold domestically, we have no revenues allocable to foreign operations. The accounting policies of the segments are the same as those described in Note 1 to our Consolidated Financial Statements. We analyze results based on profitability (i.e., loss ratios), expenses and return on equity.

Property and Casualty Insurance Segment

We write both commercial and personal lines of property and casualty insurance. We focus on our commercial lines, which represented 91.9% of our property and casualty insurance premiums earned for 2015. Our personal lines represented 8.1% of our property and casualty insurance premiums earned for 2015.

Products

Our primary commercial policies are tailored business packages that include the following coverages: fire and allied lines, other liability, automobile, workers' compensation and surety. Our personal lines consist primarily of automobile and fire and allied lines coverage, including homeowners.

Pricing

Pricing levels for our property and casualty insurance products are influenced by many factors, including an estimation of expected losses, the expenses of producing, issuing and servicing business and managing claims, the time value of money associated with such loss and expense cash flows, and a reasonable allowance for profit. We have a disciplined approach to underwriting and risk management that emphasizes profitable growth rather than premium volume or market share. Our insurance company subsidiaries are subject to state laws and regulations regarding rate and policy form approvals. The applicable state laws and regulations establish standards in certain lines of business to ensure that rates are not excessive, inadequate, unfairly discriminatory, or used to engage in unfair price competition. Our ability to increase rates and the relative timing of the process are dependent upon each respective state's requirements, as well as the competitive market environment.

Seasonality

Our property and casualty insurance segment experiences some seasonality with regard to premiums written, which are generally highest in January and July and lowest during the fourth quarter. Although we experience some seasonality in our premiums written, premiums are earned ratably over the period of coverage. Losses and loss settlement expenses incurred tend to remain consistent throughout the year, with the exception of catastrophe losses which generally are highest in the second and third quarters. Catastrophes inherently are unpredictable and can occur at any time during the year from man-made or natural disaster events that include, but are not limited to, hail, tornadoes, hurricanes and windstorms.

Life Insurance Segment

Products

United Life Insurance Company underwrites all of our life insurance business and sells annuities. Our principal products are single premium annuities, universal life products and traditional life (primarily single premium whole life insurance) products. We also underwrite and market other traditional products, including term life insurance and whole life insurance. We do not write variable annuities or variable insurance products.

Life insurance in force, before ceded reinsurance, totaled $5,491,932 and $5,366,061 as of December 31, 2015 and 2014, respectively. Traditional life insurance products represented 68.5 percent and 67.7 percent of our insurance in-force at December 31, 2015 and 2014, respectively. Universal life insurance represented 26.3 percent and 27.3 percent of insurance in force at December 31, 2015 and 2014, respectively.

Pricing

Premiums for our life and health insurance products are based on assumptions with respect to mortality, morbidity, investment yields, expenses, and lapses and are also affected by state laws and regulations, as well as competition. Pricing assumptions are based on our experience, as well as the industry in general, depending upon the factor being considered. The actual profit or loss produced by a product will vary from the anticipated profit if the actual experience differs from the assumptions used in pricing the product.

Premiums Earned by Segment

The following table sets forth our net premiums earned by segment before intersegment eliminations:

Years Ended December 31,	2015		2014		2013
Property and Casualty Insurance Segment
Net premiums earned
Other liability	$	261,303	$	228,426	$	199,548
Fire and allied lines	246,450		226,086		208,030
Automobile	210,090		187,813		169,211
Workers' compensation	95,672		88,522		81,616
Fidelity and surety	21,362		19,212		18,746
Reinsurance assumed	13,639		13,145		14,406
Other	3,179		3,735		2,635
Total net premiums earned	$	851,695	$	766,939	$	694,192
Life Insurance Segment
Net premiums earned
Ordinary life (excluding universal life)	$	53,114	$	35,557	$	38,875
Universal life policy fees	12,834		13,190		11,871
Immediate annuities with life contingencies	12,223		11,639		8,837
Accident and health	1,425		1,274		1,302
Other	388		261		261
Total net premiums earned	$	79,984	$	61,921	$	61,146

Total revenue by segment includes sales to external customers and intersegment sales that are eliminated to arrive at the total revenues as reported in the accompanying Consolidated Statements of Income and Comprehensive Income. We account for intersegment sales on the same basis as sales to external customers.

The following table sets forth certain data for each of our business segments and is reconciled to our Consolidated Financial Statements. Depreciation and amortization expense and property and equipment acquisitions for 2015, 2014 and 2013 are reported in the property and casualty insurance segment.

	2015			2014			2013
Property and Casualty Insurance:
Revenues:
Net premiums earned	$	851,695		$	766,939		$	694,192
Investment income, net of investment expenses	46,606			44,219			46,279
Net realized investment gains	1,124			4,177			6,260
Other income (loss)	(107		)	910			88
Total revenues before eliminations	$	899,318		$	816,245		$	746,819
Intersegment eliminations	(47		)	18			53
Total revenues	$	899,271		$	816,263		$	746,872
Net income before income taxes:
Revenues	$	899,318		$	816,245		$	746,819
Benefit, losses and expenses	784,691			750,768			658,645
Total net income before eliminations	$	114,627		$	65,477		$	88,174
Intersegment eliminations	743			548			545
Income before income taxes	$	115,370		$	66,025		$	88,719
Income tax expense	30,050			13,649			21,263
Net income	$	85,320		$	52,376		$	67,456
Assets
Total segment	$	2,490,138		$	2,360,764		$	2,218,464
Intersegment eliminations	(209,464		)	(233,141		)	(223,395		)
Total assets	$	2,280,674		$	2,127,623		$	1,995,069
Life Insurance:
Revenues:
Net premiums earned	$	79,984		$	61,921		$	61,146
Investment income, net of investment expenses	54,222			60,373			66,467
Net realized investment gains	1,722			3,093			2,434
Other income	508			774			614
Total revenues before eliminations	$	136,436		$	126,161		$	130,661
Intersegment eliminations	(789		)	(530		)	(491		)
Total revenues	$	135,647		$	125,631		$	130,170
Net income before income taxes:
Revenues	$	136,436		$	126,161		$	130,661
Benefit, losses and expenses	129,771			115,361			117,159
Total net income before eliminations	$	6,665		$	10,800		$	13,502
Intersegment eliminations	(584		)	(362		)	(319		)
Income before income taxes	$	6,081		$	10,438		$	13,183
Income tax expense	2,275			3,677			4,499
Net income	$	3,806		$	6,761		$	8,684
Assets	$	1,609,702		$	1,729,066		$	1,725,603
Consolidated Totals:
Total revenues	$	1,034,918		$	941,894		$	877,042
Total net income	$	89,126		$	59,137		$	76,140
Total assets	$	3,890,376		$	3,856,689		$	3,720,672