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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 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 December 31, 2018 and 2017 is as follows:
 
December 31, 2018
 
December 31, 2017
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Assets
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
Held-to-maturity securities
$
—

 
$
—

 
$
150

 
$
150

Available-for-sale securities
1,749,488

 
1,749,488

 
1,535,070

 
1,535,070

Trading securities
13,240

 
13,240

 
16,842

 
16,842

Equity securities:
248,361

 
248,361

 
287,344

 
287,344

Mortgage loans
26,021

 
25,782

 
—

 
—

Other long-term investments
37,077

 
37,077

 
49,352

 
49,352

Short-term investments
175

 
175

 
175

 
175

Cash and cash equivalents
64,454

 
64,454

 
95,562

 
95,562

Corporate-owned life insurance
4,907

 
4,907

 
4,029

 
4,029




A summary of the carrying value and estimated fair value of our financial instruments from discontinued operations at December 31, 2018 and 2017 is as follows:
 
December 31, 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) (1)
$
—

 
$
—

 
$
591,702

 
$
611,866

Annuity (benefit payments)
—

 
—

 
147,038

 
93,560
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 tables include financial instruments from both continuing and discontinued operations at December 31, 2018 and 2017:
 
 
 
Fair Value Measurements
Description
December 31, 2018
 
Level 1
 
Level 2
 
Level 3
AVAILABLE-FOR-SALE
 
 
 
 
 
 
 
Fixed maturities
 
 
 
 
 
 
 
Bonds
 
 
 
 
 
 
 
U.S. Treasury
$
27,418

 
$
—

 
$
27,418

 
$
—

U.S. government agency
214,682

 
—

 
214,682

 
—

States, municipalities and political subdivisions
 
 
 
 
 
 
 
General obligations
 
 
 
 
 
 
 
   Midwest
95,212

 
—

 
95,212

 
—

   Northeast
37,655

 
—

 
37,655

 
—

   South
113,911

 
—

 
113,911

 
—

   West
107,841

 
—

 
107,841

 
—

Special revenue
 
 
 
 
 
 
 
   Midwest
140,764

 
—

 
140,764

 
—

   Northeast
61,948

 
—

 
61,948

 
—

   South
235,809

 
—

 
235,809

 
—

   West
142,920

 
—

 
142,920

 
—

Foreign bonds
9,716

 
—

 
9,716

 
—

Public utilities
56,059

 
—

 
56,059

 
—

Corporate bonds
 
 
 
 
 
 
 
Energy
28,648

 
—

 
28,648

 
—

Industrials
53,085

 
—

 
53,085

 
—

Consumer goods and services
53,646

 
—

 
53,646

 
—

Health care
16,658

 
—

 
16,658

 
—

Technology, media and telecommunications
26,176

 
—

 
26,176

 
—

Financial services
79,349

 
—

 
79,099

 
250

Mortgage-backed securities
7,424

 
—

 
7,424

 
—

Collateralized mortgage obligations
 
 
 
 
 
 
 
Government national mortgage association
76,701

 
—

 
76,701

 
—

Federal home loan mortgage corporation
107,623

 
—

 
107,623

 
—

Federal national mortgage association
52,748

 
—

 
52,748

 
—

Asset-backed securities
3,495

 
—

 
2,829

 
666

Total Available-For-Sale Fixed Maturities
$
1,749,488

 
$
—

 
$
1,748,572

 
$
916

TRADING
 
 
 
 
 
 
 
Fixed maturities
 
 
 
 
 
 
 
Bonds
 
 
 
 
 
 
 
Corporate bonds
 
 
 
 
 
 
 
Industrials
$
397

 
$
—

 
$
397

 
$
—

Consumer goods and services
1,599

 
—

 
1,599

 
—

Health care
3,236

 
—

 
3,236

 
—

Technology, media and telecommunications
3,028

 
—

 
3,028

 
—

Financial services
2,231

 
—

 
2,231

 
—

Redeemable preferred stocks
2,749

 
2,749

 
—

 
—

Total Trading Securities
$
13,240

 
$
2,749

 
$
10,491

 
$
—

Equity securities
 
 
 
 
 
 
 
Public utilities
15,949

 
15,949

 
—

 
—

Energy
10,975

 
10,975

 
—

 
—

Industrials
53,536

 
53,536

 
—

 
—

Consumer goods and services
24,465

 
24,465

 
—

 
—

Health care
22,286

 
22,286

 
—

 
—

     Financial Services
101,555

 
101,555

 
—

 
—

Technology, media and telecommunications
13,944

 
13,944

 
—

 
—

Nonredeemable preferred stocks
5,651

 
5,056

 
—

 
595

Total Equity Securities
$
248,361

 
$
247,766

 
$
—

 
$
595

Short-Term Investments
$
175

 
$
175

 
$
—

 
$
—

Money Market Accounts
$
3,275

 
$
3,275

 
$
—

 
$
—

Corporate-Owned Life Insurance
$
4,907

 
$
—

 
$
4,907

 
$
—

Total Assets Measured at Fair Value
$
2,019,446

 
$
253,965

 
$
1,763,970

 
$
1,511


 
 
 
Fair Value Measurements
Description
December 31, 2017
 
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

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

 
—

 
—

Total Trading Securities
$
16,842

 
$
2,559

 
$
14,283

 
$
—

Equity securities
 
 
 
 
 
 
 
Public utilities
$
23,313

 
$
23,313

 
$
—

 
$
—

Energy
14,755

 
14,755

 
—

 
—

Industrials
67,508

 
67,506

 
2

 
—

Consumer goods and services
27,002

 
27,002

 
—

 
—

Health care
40,428

 
40,428

 
—

 
—

Financial Services
116,645

 
116,645

 
—

 
—


Technology, media and telecommunications
17,508

 
17,508

 
—

 
—

Nonredeemable preferred stocks
3,838

 
2,956

 
—

 
882

Total Equity Securities
$
310,997

 
$
310,113

 
$
2

 
$
882

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 December 31, 2017:
December 31, 2017
 
 
Fair Value Measurements
Description
Total
 
Level 1
 
Level 2
 
Level 3
AVAILABLE-FOR-SALE
 
 
 
 
 
 
 
Continuing operations
$
1,535,070

 
$
—

 
$
1,534,323

 
$
747

Discontinued operations
1,430,025

 
—

 
1,421,780

 
8,245

Total Available-for-Sale
$
2,965,095

 
$
—


$
2,956,103


$
8,992

TRADING

 
 
 
 
 
 
Continuing operations
$
16,842

 
$
2,559

 
$
14,283

 
$
—

Discontinued operations
—

 
—

 
—

 
—

Total Trading Securities
$
16,842

 
$
2,559


$
14,283


$
—

EQUITY SECURITIES:
 
 
 
 
 
 
 
Continuing operations
$
287,344

 
$
286,462

 
$
—

 
$
882

Discontinued operations
23,653

 
23,651

 
2

 
—

Equity securities
$
310,997

 
$
310,113

 
$
2

 
$
882

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
Summary of 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 2018:
 
 
Corporate bonds
 
Asset-backed securities
 
Equities
 
Total
Balance at January 1, 2018
 
$
100

 
$
647

 
$
882

 
$
1,629

Unrealized gains (losses) (1)
 
—

 
19

 
(287
)
 
(268
)
Purchases
 
150

 
—

 
—

 
150

Balance at December 31, 2018
 
$
250

 
$
666

 
$
595

 
$
1,511


(1) 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 both continuing and discontinued operations for 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

Unrealized gains (losses) (1)
(8
)
 
(129
)
 
198

 
287

 
348

Purchases
—

 
100

 
—

 
145

 
245

Disposals
(160
)
 
(1,520
)
 
—

 
(4,137
)
 
(5,817
)
Balance at December 31, 2017
$
—

 
$
8,345

 
$
647

 
$
882

 
$
9,874

(1) Realized gains (losses) are recorded as a component of earnings, whereas unrealized gains (losses) are recorded as a component of comprehensive income.
Schedule of Commercial Mortgage Loans The following tables present the carrying value of our commercial mortgage loans and additional information at December 31, 2018 and 2017:
Commercial Mortgage Loans
 
December 31, 2018
 
December 31, 2017
Loan-to-value
 
 
 
Less than 65%
$
25,828

 
—

Total amortized cost
$
25,828

 
$
—

Valuation allowance
(46
)
 
—

Total mortgage loans
$
25,782


$
—


Mortgage Loans by Region
 
December 31, 2018
 
December 31, 2017
 
Carrying Value
 
Percent of Total
 
Carrying Value
 
Percent of Total
East North Central
$
3,244

 
12.6
%
 
$
—

 
—
%
Southern Atlantic
6,652

 
25.8

 
—

 
—

East South Central
4,975

 
19.3

 
—

 
—

New England
6,588

 
25.4

 
—

 
—

Middle Atlantic
4,369

 
16.9

 
—

 
—

Total mortgage loans at amortized cost
$
25,828

 
100.0
%
 
$
—

 
—
%
Mortgage Loans by Property Type
 
December 31, 2018
 
December 31, 2017
 
Carrying Value
 
Percent of Total
 
Carrying Value
 
Percent of Total
Commercial
 
 
 
 
 
 
 
Multifamily
$
3,244

 
12.6
%
 
$
—

 
—
%
Office
11,627

 
45.0

 
—

 
—

Mixed use/Other
10,957

 
42.4

 
—

 
—

Total mortgage loans at amortized cost
$
25,828

 
100.0
%
 
$
—

 
—
%