Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Carrying Value and Estimated Fair Value of Financial Instruments

A summary of the carrying value and estimated fair value of our financial instruments at March 31, 2016 and December 31, 2015 is as follows:



	March 31, 2016				December 31, 2015
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	667	$	664	$	675	$	672
Available-for-sale securities	2,855,166		2,855,166		2,824,961		2,824,961
Trading securities	13,000		13,000		12,622		12,622
Equity securities:
Available-for-sale securities	237,816		237,816		236,247		236,247
Trading securities	4,446		4,446		4,353		4,353
Mortgage loans	4,197		3,899		4,237		3,961
Policy loans	5,348		5,348		5,618		5,618
Other long-term investments	51,815		51,815		54,151		54,151
Short-term investments	175		175		175		175
Cash and cash equivalents	143,981		143,981		106,449		106,449
Corporate-owned life insurance	2,160		2,160		1,716		1,716
Liabilities
Policy reserves
Annuity (accumulations) ⁽¹⁾	$	727,595	$	728,089	$	707,190	$	744,931
Annuity (benefit payments)	137,810		94,659		131,899		95,467

(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 March 31, 2016 and December 31, 2015:



March 31, 2016			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	24,083	$	—	$	24,083	$	—
U.S. government agency	179,816		—		179,816		—
States, municipalities and political subdivisions
General obligations
Midwest	166,136		—		166,136		—
Northeast	63,927		—		63,927		—
South	123,419		—		123,419		—
West	110,444		—		110,444		—
Special revenue
Midwest	163,088		—		162,744		344
Northeast	30,342		—		30,342		—
South	166,270		—		166,270		—
West	84,656		—		84,656		—
Foreign bonds	80,745		—		80,745		—
Public utilities	221,920		—		221,920		—
Corporate bonds
Energy	114,682		—		114,682		—
Industrials	244,122		—		244,122		—
Consumer goods and services	183,784		—		182,570		1,214
Health care	91,526		—		91,526		—
Technology, media and telecommunications	144,537		—		144,537		—
Financial services	261,022		—		251,520		9,502
Mortgage-backed securities	15,799		—		15,799		—
Collateralized mortgage obligations
Government national mortgage association	127,089		—		127,089		—
Federal home loan mortgage corporation	139,511		—		139,511		—
Federal national mortgage association	113,433		—		113,433		—
Asset-backed securities	4,815		—		3,890		925
Total Available-for-Sale Fixed Maturities	$	2,855,166	$	—	$	2,843,181	$	11,985
Equity securities:
Common stocks
Public utilities	$	21,943	$	21,943	$	—	$	—
Energy	12,765		12,765		—		—
Industrials	45,742		45,742		—		—
Consumer goods and services	24,274		24,274		—		—
Health care	26,871		26,871		—		—



Technology, media and telecommunications	14,424		14,424		—		—
Financial services	91,328		87,336		—		3,992
Nonredeemable preferred stocks	469		469		—		—
Total Available-for-Sale Equity Securities	$	237,816	$	233,824	$	—	$	3,992
Total Available-for-Sale Securities	$	3,092,982	$	233,824	$	2,843,181	$	15,977
TRADING
Fixed maturities:
Corporate bonds
Industrials	$	3,644	$	—	$	3,644	$	—
Consumer goods and services	272		—		272		—
Health care	1,930		—		1,930		—
Technology, media and telecommunications	338		—		338		—
Financial services	4,069		—		4,069		—
Asset-backed securities	—		—		—		—
Redeemable preferred stocks	2,747		2,747		—		—
Equity securities:
Energy	293		293		—		—
Industrials	1,027		1,027		—		—
Consumer goods and services	899		899		—		—
Health care	304		304		—		—
Financial services	235		235		—		—
Nonredeemable preferred stocks	1,688		1,688		—		—
Total Trading Securities	$	17,446	$	7,193	$	10,253	$	—
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	63,567	$	63,567	$	—	$	—
Corporate-Owned Life Insurance	$	2,160	$	—	$	2,160	$	—
Total Assets Measured at Fair Value	$	3,176,330	$	304,759	$	2,855,594	$	15,977



December 31, 2015			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	21,649	$	—	$	21,649	$	—
U.S. government agency	233,030		—		233,030		—
States, municipalities and political subdivisions
General obligations
Midwest	165,456		—		165,456		—
Northeast	58,445		—		58,445		—
South	128,789		—		128,789		—
West	106,814		—		106,814		—
Special revenue
Midwest	157,706		—		157,363		343
Northeast	24,599		—		24,599		—
South	148,437		—		148,437		—
West	82,041		—		82,041		—
Foreign bonds	82,528		—		82,528		—
Public utilities	215,683		—		215,683		—
Corporate bonds
Energy	113,119		—		113,119		—
Industrials	224,255		—		224,255		—
Consumer goods and services	174,597		—		173,364		1,233
Health care	93,509		—		93,509		—
Technology, media and telecommunications	142,400		—		142,400		—
Financial services	263,485		—		253,823		9,662
Mortgage-backed securities	16,738		—		16,738		—
Collateralized mortgage obligations
Government national mortgage association	119,626		—		119,626		—
Federal home loan mortgage corporation	138,909		—		138,909		—
Federal national mortgage association	107,480		—		107,480		—
Asset-backed securities	5,666		—		4,630		1,036
Total Available-for-Sale Fixed Maturities	$	2,824,961	$	—	$	2,812,687	$	12,274
Equity securities:
Common stocks
Public utilities	$	19,060	$	19,060	$	—	$	—
Energy	11,211		11,211		—		—
Industrials	44,810		44,810		—		—
Consumer goods and services	23,315		23,315		—		—
Health care	28,217		28,217		—		—
Technology, media and telecommunications	13,364		13,364		—		—
Financial services	95,694		91,588		128		3,978



Nonredeemable preferred stocks	576		576		—		—
Total Available-for-Sale Equity Securities	$	236,247	$	232,141	$	128	$	3,978
Total Available-for-Sale Securities	$	3,061,208	$	232,141	$	2,812,815	$	16,252
TRADING
Fixed maturities:
Bonds
Corporate bonds
Industrials	$	3,558	$	—	$	3,558	$	—
Consumer goods and services	118		—		118		—
Health care	2,032		—		2,032		—
Technology, media and telecommunications	335		—		335		—
Financial services	4,094		—		4,094		—
Redeemable preferred stocks	2,485		2,485		—		—
Equity securities:
Energy	267		267		—		—
Industrials	986		986		—		—
Consumer goods and services	942		942		—		—
Health care	304		304		—		—
Financial services	229		229		—		—
Nonredeemable preferred stocks	1,625		1,625		—		—
Total Trading Securities	$	16,975	$	6,838	$	10,137	$	—
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	20,805	$	20,805	$	—	$	—
Corporate-Owned Life Insurance	$	1,716	$	—	$	1,716	$	—
Total Assets Measured at Fair Value	$	3,100,879	$	259,959	$	2,824,668	$	16,252

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 the three-month period ended March 31, 2016:



	States, municipalities and political subdivisions		Corporate bonds			Asset-backed securities			Equities			Total
Balance at January 1, 2016	$	343	$	10,895		$	1,036		$	3,978		$	16,252
Net unrealized gains (losses)⁽¹⁾	1		137			35			—			173
Purchases	—		—			—			132			132
Disposals	—		(316		)	(146		)	(118		)	(580		)
Balance at March 31, 2016	$	344	$	10,716		$	925		$	3,992		$	15,977

(1) Unrealized gains (losses) are recorded as a component of comprehensive income.