Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

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 from continuing operations at June 30, 2018 and December 31, 2017 is as follows:

	June 30, 2018				December 31, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	150	$	150	$	150	$	150
Available-for-sale securities	1,792,019		1,792,019		1,535,070		1,535,070
Trading securities	14,705		14,705		16,842		16,842
Equity securities	260,979		260,979		287,344		287,344
Mortgage loans	9,896		9,896		—		—
Other long-term investments	43,949		43,949		49,352		49,352
Short-term investments	175		175		175		175
Cash and cash equivalents	100,840		100,840		95,562		95,562
Corporate-owned life insurance	4,625		4,625		4,029		4,029

A summary of the carrying value and estimated fair value of our financial instruments from discontinued operations at June 30, 2018 and December 31, 2017 is as follows:

	June 30, 2018				December 31, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Assets
Investments
Fixed maturities:
Held-to-maturity securities	$	—	$	—	$	34	$	34
Available-for-sale securities	—		—		1,430,025		1,430,025
Equity securities:
Available-for-sale securities	—		—		23,653		23,653
Mortgage loans	—		—		3,594		3,435
Policy loans	—		—		5,815		5,815
Other long-term investments	—		—		16,437		16,437
Cash and cash equivalents	—		—		15,851		15,851
Liabilities
Policy reserves
Annuity (accumulations)	$	—	$	—	$	591,702	$	611,866
Annuity (benefit payments)	—		—		147,038		93,560

Note: The sale of the life insurance business was completed on March 30, 2018.

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. The table includes financial instruments from both continuing and discontinued operations at June 30, 2018 and December 31, 2017:

June 30, 2018			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	119,954	$	—	$	119,954	$	—
U.S. government agency	194,269		—		194,269		—
States, municipalities and political subdivisions
General obligations
Midwest	99,661		—		99,661		—
Northeast	41,111		—		41,111		—
South	118,317		—		118,317		—
West	109,571		—		109,571		—
Special revenue
Midwest	143,766		—		143,766		—
Northeast	62,884		—		62,884		—
South	244,013		—		244,013		—
West	146,170		—		146,170		—
Foreign bonds	7,823		—		7,823		—
Public utilities	48,684		—		48,684		—
Corporate bonds
Energy	22,272		—		22,272		—
Industrials	41,943		—		41,943		—
Consumer goods and services	43,526		—		43,526		—

Health care	12,977		—		12,977		—
Technology, media and telecommunications	25,885		—		25,885		—
Financial services	71,937		—		71,837		100
Mortgage-backed securities	8,187		—		8,187		—
Collateralized mortgage obligations
Government national mortgage association	71,013		—		71,013		—
Federal home loan mortgage corporation	109,174		—		109,174		—
Federal national mortgage association	45,398		—		45,398		—
Asset-backed securities	3,484		—		2,845		639
Total Available-for-Sale Fixed Maturities	$	1,792,019	$	—	$	1,791,280	$	739
TRADING
Fixed maturities:
Bonds
Corporate bonds
Industrials	$	2,099	$	—	$	2,099	$	—
Consumer goods and services	1,772		—		1,772		—
Health care	3,914		—		3,914		—
Technology, media and telecommunications	1,960		—		1,960		—
Financial services	2,120		—		2,120		—
Redeemable preferred stocks	2,840		2,840		—		—
Total Trading Securities	$	14,705	$	2,840	$	11,865	$	—
EQUITY SECURITIES
Common stocks
Public utilities	$	15,565	$	15,565	$	—	$	—
Energy	14,029		14,029		—		—
Industrials	58,683		58,683		—		—
Consumer goods and services	24,328		24,328		—		—
Health care	19,503		19,503		—		—
Technology, media and telecommunications	14,624		14,624		—		—
Financial services	110,222		110,222		—		—
Nonredeemable preferred stocks	4,025		3,356		—		669
Total Equity Securities	$	260,979	$	260,310	$	—	$	669
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	25,927	$	25,927	$	—	$	—
Corporate-Owned Life Insurance	$	4,625	$	—	$	4,625	$	—
Total Assets Measured at Fair Value	$	2,098,430	$	289,252	$	1,807,770	$	1,408

Note: The sale of the life insurance business was completed on March 30, 2018.

December 31, 2017			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	16,891	$	—	$	16,891	$	—
U.S. government agency	122,168		—		122,168		—
States, municipalities and political subdivisions
General obligations
Midwest	109,696		—		109,696		—
Northeast	48,641		—		48,641		—
South	141,519		—		141,519		—
West	113,011		—		113,011		—
Special revenue
Midwest	158,744		—		158,744		—
Northeast	79,760		—		79,760		—
South	263,512		—		263,512		—
West	158,307		—		158,307		—
Foreign bonds	52,753		—		52,753		—
Public utilities	209,144		—		209,144		—
Corporate bonds
Energy	95,053		—		95,053		—
Industrials	221,707		—		221,707		—
Consumer goods and services	186,257		—		185,589		668
Health care	75,408		—		75,408		—
Technology, media and telecommunications	148,979		—		148,979		—
Financial services	283,151		—		275,474		7,677
Mortgage-backed securities	13,691		—		13,691		—
Collateralized mortgage obligations
Government national mortgage association	157,483		—		157,483		—
Federal home loan mortgage corporation	199,152		—		199,152		—
Federal national mortgage association	105,432		—		105,432		—
Asset-backed securities	4,636		—		3,989		647
Total Available-for-Sale Fixed Maturities	$	2,965,095	$	—	$	2,956,103	$	8,992
Equity securities:
Common stocks
Public utilities	$	22,439	$	22,439	$	—	$	—
Energy	14,565		14,565		—		—
Industrials	66,519		66,517		2		—
Consumer goods and services	25,688		25,688		—		—
Health care	40,103		40,103		—		—
Technology, media and telecommunications	17,508		17,508		—		—
Financial services	116,447		116,447		—		—

Nonredeemable preferred stocks	1,297		415		—		882
Total Available-for-Sale Equity Securities	$	304,566	$	303,682	$	2	$	882
Total Available-for-Sale Securities	$	3,269,661	$	303,682	$	2,956,105	$	9,874
TRADING
Fixed maturities:
Bonds
Corporate bonds
Industrials	$	2,220	$	—	$	2,220	$	—
Consumer goods and services	1,535		—		1,535		—
Health care	3,741		—		3,741		—
Technology, media and telecommunications	1,221		—		1,221		—
Financial services	5,566		—		5,566		—
Redeemable preferred stocks	2,559		2,559		—		—
Equity securities:
Public utilities	874		874		—		—
Energy	190		190		—		—
Industrials	989		989		—		—
Consumer goods and services	1,314		1,314		—		—
Health care	325		325		—		—
Financial services	198		198		—		—
Nonredeemable preferred stocks	2,541		2,541		—		—
Total Trading Securities	$	23,273	$	8,990	$	14,283	$	—
Short-Term Investments	$	175	$	175	$	—	$	—
Money Market Accounts	$	16,824	$	16,824	$	—	$	—
Corporate-Owned Life Insurance	$	4,029	$	—	$	4,029	$	—
Total Assets Measured at Fair Value	$	3,313,962	$	329,671	$	2,974,417	$	9,874

The following tables are a reconciliation for both continuing and discontinued operations of the presentation of the categorization for our financial instruments measured at fair value on a recurring basis at June 30, 2018 and December 31, 2017:

June 30, 2018			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,792,019	$	—	$	1,791,280	$	739
Discontinued operations	—		—		—		—
Total Available-for-Sale Fixed Maturities	$	1,792,019	$	—	$	1,791,280	$	739
TRADING
Fixed maturities:
Continuing operations	$	14,705	$	2,840	$	11,865	$	—
Discontinued operations	—		—		—		—
Total Trading Securities	$	14,705	$	2,840	$	11,865	$	—
EQUITY SECURITIES
Continuing operations	$	260,979	$	260,310	$	—	$	669
Discontinued operations	—		—		—		—
Total Equity Securities	$	260,979	$	260,310	$	—	$	669
SHORT-TERM INVESTMENTS
Continuing operations	$	175	$	175	$	—	$	—
Discontinued operations	—		—		—		$	—
Short-Term Investments	$	175	$	175	$	—	$	—
MONEY MARKET ACCOUNTS
Continuing operations	$	25,927	$	25,927	$	—	$	—
Discontinued operations	—		—		—		—
Money Market Accounts	$	25,927	$	25,927	$	—	$	—
CORPORATE-OWNED LIFE INSURANCE
Continuing operations	$	4,625	$	—	$	4,625	$	—
Discontinued operations	—		—		—		—
Corporate-Owned Life Insurance	$	4,625	$	—	$	4,625	$	—
Total Assets Measured at Fair Value	$	2,098,430	$	289,252	$	1,807,770	$	1,408

Note: The sale of the life insurance business was completed on March 30, 2018.

December 31, 2017			Fair Value Measurements
Description	Total		Level 1		Level 2		Level 3
AVAILABLE-FOR-SALE
Fixed maturities:
Continuing operations	$	1,535,070	$	—	$	1,534,323	$	747
Discontinued operations	1,430,025		—		1,421,780		8,245
Total Available-for-Sale Fixed Maturities	$	2,965,095	$	—	$	2,956,103	$	8,992
Equity securities:
Continuing operations	$	280,913	$	280,031	$	—	$	882
Discontinued operations	23,653		23,651		2		—
Total Equity Securities	$	304,566	$	303,682	$	2	$	882
Total Available-for-Sale Securities	$	3,269,661	$	303,682	$	2,956,105	$	9,874
TRADING
Fixed maturities:
Continuing operations	$	16,842	$	2,559	$	14,283	$	—
Discontinued operations	—		—		—		—
Equity securities:
Continuing operations	6,431		6,431		—		—
Discontinued operations	—		—		—		—
Total Trading Securities	$	23,273	$	8,990	$	14,283	$	—
SHORT-TERM INVESTMENTS
Continuing operations	$	175	$	175	$	—	$	—
Discontinued operations	—		—		—		—
Short-Term Investments	$	175	$	175	$	—	$	—
MONEY MARKET ACCOUNTS
Continuing operations	$	6,147	$	6,147	$	—	$	—
Discontinued operations	10,677		10,677		—		—
Money Market Accounts	$	16,824	$	16,824	$	—	$	—
CORPORATE-OWNED LIFE INSURANCE
Continuing operations	$	4,029	$	—	$	4,029	$	—
Discontinued operations	—		—		—		—
Corporate-Owned Life Insurance	$	4,029	$	—	$	4,029	$	—
Total Assets Measured at Fair Value	$	3,313,962	$	329,671	$	2,974,417	$	9,874

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 from continuing operations for the three-month period ended June 30, 2018:

	Corporate bonds		Asset-backed securities		Equities			Total
Balance at March 31, 2018	$	100	$	632	$	820		$	1,552
Net unrealized gains (losses)(1)			7		(151		)	(144		)
Balance at June 30, 2018	$	100	$	639	$	669		$	1,408

(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 from continuing operations for the six-month period ended June 30, 2018:

	Corporate bonds		Asset-backed securities			Equities			Total
Balance at January 1, 2018	$	100	$	647		$	882		$	1,629
Net unrealized losses(1)	—		(8		)	(213		)	(221		)
Balance at June 30, 2018	$	100	$	639		$	669		$	1,408

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

Carrying Value of Commercial Mortgage Loans by Loan-to-Value Ratio

The following tables present the carrying value of our commercial mortgage loans and additional information at June 30, 2018 and December 31, 2017:

Commercial Mortgage Loans
	June 30, 2018		December 31, 2017
Loan-to-value	Carrying Value		Carrying Value
Less than 65%	$	9,896	—
Total commercial mortgage loans	$	9,896	$	—

Schedules of Concentration of Risk, by Risk Factor

Mortgage Loans by Region
	June 30, 2018				December 31, 2017
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	3,245	32.8	%	$	—	—	%
Southern Atlantic	6,651		67.2		—		—
Total mortgage loans	$	9,896	100.0	%	$	—	—	%

Mortgage Loans by Property Type
	June 30, 2018				December 31, 2017
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Multifamily	$	3,245	32.8	%	$	—	—	%
Office	6,651		67.2		—		—
Total mortgage loans	$	9,896	100.0	%	$	—	—	%