Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 and December 31, 2016 is as follows:

	March 31, 2017				December 31, 2016
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	196	$	195	$	199	$	198
Available-for-sale securities	2,932,188		2,932,188		2,898,126		2,898,126
Trading securities	14,971		14,971		14,390		14,390
Equity securities:
Available-for-sale securities	275,684		275,684		270,416		270,416
Trading securities	6,183		6,183		5,644		5,644
Mortgage loans	3,817		3,640		3,895		3,706
Policy loans	5,396		5,396		5,366		5,366
Other long-term investments	67,024		67,024		67,639		67,639
Short-term investments	175		175		175		175
Cash and cash equivalents	93,656		93,656		110,853		110,853
Corporate-owned life insurance	3,000		3,000		2,592		2,592
Liabilities
Policy reserves
Annuity (accumulations) (1)	$	640,973	$	649,395	$	646,764	$	666,711
Annuity (benefit payments)	142,968		94,385		144,283		95,129

(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, 2017 and December 31, 2016:

March 31, 2017			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	22,115	$	—	$	22,115	$	—
U.S. government agency	71,659		—		71,659		—
States, municipalities and political subdivisions
General obligations
Midwest	134,511		—		134,511		—
Northeast	57,106		—		57,106		—
South	143,523		—		143,523		—
West	122,745		—		122,745		—
Special revenue
Midwest	166,875		—		166,707		168
Northeast	70,724		—		70,724		—
South	254,901		—		254,901		—
West	146,374		—		146,374		—
Foreign bonds	61,371		—		61,371		—
Public utilities	214,972		—		214,972		—
Corporate bonds

Energy	105,191		—		105,191		—
Industrials	226,995		—		226,995		—
Consumer goods and services	180,401		—		179,342		1,059
Health care	77,953		—		77,953		—
Technology, media and telecommunications	144,975		—		144,975		—
Financial services	276,879		—		268,444		8,435
Mortgage-backed securities	16,282		—		16,282		—
Collateralized mortgage obligations
Government national mortgage association	155,586		—		155,586		—
Federal home loan mortgage corporation	176,485		—		176,485		—
Federal national mortgage association	100,237		—		100,237		—
Asset-backed securities	4,328		—		3,872		456
Total Available-for-Sale Fixed Maturities	$	2,932,188	$	—	$	2,922,070	$	10,118
Equity securities:
Common stocks
Public utilities	$	20,960	$	20,960	$	—	$	—
Energy	14,313		14,313		—		—
Industrials	55,329		55,329		—		—
Consumer goods and services	25,282		25,282		—		—
Health care	29,828		29,828		—		—
Technology, media and telecommunications	15,305		15,305		—		—
Financial services	113,606		109,483		—		4,123
Nonredeemable preferred stocks	1,061		466		—		595
Total Available-for-Sale Equity Securities	$	275,684	$	270,966	$	—	$	4,718
Total Available-for-Sale Securities	$	3,207,872	$	270,966	$	2,922,070	$	14,836
TRADING
Fixed maturities:
Corporate bonds
Industrials	$	3,761	$	—	$	3,761	$	—
Consumer goods and services	143		—		143		—
Health care	3,597		—		3,597		—
Technology, media and telecommunications	1,195		—		1,195		—
Financial services	4,567		—		4,567		—
Asset-backed securities	—		—		—		—
Redeemable preferred stocks	1,708		1,708		—		—
Equity securities:
Public utilities	621		621		—		—
Energy	231		231		—		—
Industrials	897		897		—		—

Consumer goods and services	1,168		1,168		—		—
Health care	366		366		—		—
Financial services	220		220		—		—
Nonredeemable preferred stocks	2,680		2,680		—		—
Total Trading Securities	$	21,154	$	7,891	$	13,263	$	—
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	19,124	$	19,124	$	—	$	—
Corporate-Owned Life Insurance	$	3,000	$	—	$	3,000	$	—
Total Assets Measured at Fair Value	$	3,251,325	$	298,156	$	2,938,333	$	14,836

December 31, 2016			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	23,195	$	—	$	23,195	$	—
U.S. government agency	77,597		—		77,597		—
States, municipalities and political subdivisions
General obligations
Midwest	144,143		—		144,143		—
Northeast	58,409		—		58,409		—
South	128,369		—		128,369		—
West	113,731		—		113,731		—
Special revenue
Midwest	168,310		—		168,142		168
Northeast	68,065		—		68,065		—
South	239,187		—		239,187		—
West	131,744		—		131,744		—
Foreign bonds	65,234		—		65,234		—
Public utilities	215,674		—		215,674		—
Corporate bonds
Energy	108,860		—		108,860		—
Industrials	229,903		—		229,903		—
Consumer goods and services	181,687		—		180,590		1,097
Health care	83,123		—		83,123		—
Technology, media and telecommunications	144,612		—		144,612		—
Financial services	273,951		—		265,154		8,797
Mortgage-backed securities	17,248		—		17,248		—
Collateralized mortgage obligations
Government national mortgage association	144,460		—		144,460		—
Federal home loan mortgage corporation	174,458		—		174,458		—
Federal national mortgage association	101,896		—		101,896		—
Asset-backed securities	4,270		—		3,821		449
Total Available-for-Sale Fixed Maturities	$	2,898,126	$	—	$	2,887,615	$	10,511
Equity securities:
Common stocks
Public utilities	$	19,671	$	19,671	$	—	$	—
Energy	15,047		15,047		—		—
Industrials	51,794		51,794		—		—
Consumer goods and services	24,117		24,117		—		—
Health care	27,420		27,420		—		—
Technology, media and telecommunications	15,369		15,369		—		—
Financial services	115,950		111,958		—		3,992

Nonredeemable preferred stocks	1,048		453		—		595
Total Available-for-Sale Equity Securities	$	270,416	$	265,829	$	—	$	4,587
Total Available-for-Sale Securities	$	3,168,542	$	265,829	$	2,887,615	$	15,098
TRADING
Fixed maturities:
Bonds
Corporate bonds
Industrials	$	3,919	$	—	$	3,919	$	—
Consumer goods and services	127		—		127		—
Health care	3,410		—		3,410		—
Technology, media and telecommunications	787		—		787		—
Financial services	4,842		—		4,842		—
Redeemable preferred stocks	1,305		1,305		—		—
Equity securities:
Public utilities	613		613		—		—
Energy	286		286		—		—
Industrials	877		877		—		—
Consumer goods and services	1,202		1,202		—		—
Health care	339		339		—		—
Financial services	206		206		—		—
Nonredeemable preferred stocks	2,121		2,121		—		—
Total Trading Securities	$	20,034	$	6,949	$	13,085	$	—
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	16,802	$	16,802	$	—	$	—
Corporate-Owned Life Insurance	$	2,592	$	—	$	2,592	$	—
Total Assets Measured at Fair Value	$	3,208,145	$	289,755	$	2,903,292	$	15,098

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, 2017:

	States, municipalities and political subdivisions		Corporate bonds			Asset-backed securities		Equities			Total
Balance at January 1, 2017	$	168	$	9,894		$	449	$	4,587		$	15,098
Net unrealized gains (losses)(1)	—		(67		)	7		—			(60		)
Purchases	—		—			—		145			145
Disposals	—		(333		)	—		(14		)	(347		)
Balance at March 31, 2017	$	168	$	9,494		$	456	$	4,718		$	14,836

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