Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2017 and December 31, 2016 is as follows:

	June 30, 2017				December 31, 2016
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	192	$	192	$	199	$	198
Available-for-sale securities	2,955,079		2,955,079		2,898,126		2,898,126
Trading securities	15,828		15,828		14,390		14,390
Equity securities:
Available-for-sale securities	276,306		276,306		270,416		270,416
Trading securities	6,612		6,612		5,644		5,644
Mortgage loans	3,765		3,573		3,895		3,706
Policy loans	5,499		5,499		5,366		5,366
Other long-term investments	65,664		65,664		67,639		67,639
Short-term investments	175		175		175		175
Cash and cash equivalents	130,421		130,421		110,853		110,853
Corporate-owned life insurance	3,244		3,244		2,592		2,592
Liabilities
Policy reserves
Annuity (accumulations) (1)	$	629,169	$	631,070	$	646,764	$	666,711
Annuity (benefit payments)	143,925		94,323		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 June 30, 2017 and December 31, 2016:

June 30, 2017			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	22,044	$	—	$	22,044	$	—
U.S. government agency	80,793		—		80,793		—
States, municipalities and political subdivisions
General obligations
Midwest	130,954		—		130,954		—
Northeast	55,579		—		55,579		—
South	142,991		—		142,991		—
West	121,954		—		121,954		—
Special revenue
Midwest	166,312		—		166,235		77
Northeast	79,979		—		79,979		—
South	258,990		—		258,990		—
West	152,461		—		152,461		—
Foreign bonds	57,490		—		57,490		—
Public utilities	211,671		—		211,671		—
Corporate bonds
Energy	101,465		—		101,465		—
Industrials	220,426		—		220,426		—
Consumer goods and services	184,762		—		184,034		728
Health care	78,332		—		78,332		—
Technology, media and telecommunications	146,258		—		146,258		—
Financial services	267,551		—		259,223		8,328
Mortgage-backed securities	15,498		—		15,498		—
Collateralized mortgage obligations
Government national mortgage association	155,867		—		155,867		—
Federal home loan mortgage corporation	194,228		—		194,228		—
Federal national mortgage association	104,676		—		104,676		—
Asset-backed securities	4,798		—		4,176		622
Total Available-for-Sale Fixed Maturities	$	2,955,079	$	—	$	2,945,324	$	9,755
Equity securities:
Common stocks
Public utilities	$	21,316	$	21,316	$	—	$	—
Energy	13,526		13,526		—		—
Industrials	57,291		57,291		—		—
Consumer goods and services	25,331		25,331		—		—

Health care	32,721		32,721		—		—
Technology, media and telecommunications	14,739		14,739		—		—
Financial services	110,312		110,312		—		—
Nonredeemable preferred stocks	1,070		475		—		595
Total Available-for-Sale Equity Securities	$	276,306	$	275,711	$	—	$	595
Total Available-for-Sale Securities	$	3,231,385	$	275,711	$	2,945,324	$	10,350
TRADING
Fixed maturities:
Corporate bonds
Industrials	$	3,724	$	—	$	3,724	$	—
Consumer goods and services	293		—		293		—
Health care	3,708		—		3,708		—
Technology, media and telecommunications	1,200		—		1,200		—
Financial services	4,262		—		4,262		—
Redeemable preferred stocks	2,641		2,641		—		—
Equity securities:
Public utilities	819		819		—		—
Energy	216		216		—		—
Industrials	947		947		—		—
Consumer goods and services	1,200		1,200		—		—
Health care	370		370		—		—
Financial services	232		232		—		—
Nonredeemable preferred stocks	2,828		2,828		—		—
Total Trading Securities	$	22,440	$	9,253	$	13,187	$	—
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	14,641	$	14,641	$	—	$	—
Corporate-Owned Life Insurance	$	3,244	$	—	$	3,244	$	—
Total Assets Measured at Fair Value	$	3,271,885	$	299,780	$	2,961,755	$	10,350

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 June 30, 2017:

	States, municipalities and political subdivisions			Corporate bonds			Asset-backed securities		Equities			Total
Balance at March 31, 2017	$	168		$	9,494		$	456	$	4,718		$	14,836
Net unrealized gains (losses)(1)	(6		)	68			166		—			228
Disposals	(85		)	(506		)	—		(4,123		)	(4,714		)
Balance at June 30, 2017	$	77		$	9,056		$	622	$	595		$	10,350

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

The following table provides a summary of the changes in fair value of our Level 3 securities for the six-month period ended June 30, 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)	(6		)	1			173		—			168
Purchases	—			—			—		145			145
Disposals	(85		)	(839		)	—		(4,137		)	(5,061		)
Balance at June 30, 2017	$	77		$	9,056		$	622	$	595		$	10,350

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