Investments (Tables)
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9 Months Ended |
Sep. 30, 2016 |
Investments [Abstract] |
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Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and OTTI |
The following tables show the cost or amortized cost, gross unrealized gains and losses, fair value and other-than-temporary impairment (“OTTI”) included within accumulated other comprehensive income of the Company's fixed maturity and equity securities as of the dates indicated: | | | | | | | | | | | | | | | | | | | | | | September 30, 2016 | | Cost or Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | OTTI in AOCI (a) | Fixed maturity securities: | | | | | | | | | | U.S. government and government agencies and authorities | $ | 175,388 |
| | $ | 6,130 |
| | $ | (20 | ) | | $ | 181,498 |
| | $ | — |
| States, municipalities and political subdivisions | 477,381 |
| | 43,385 |
| | (53 | ) | | 520,713 |
| | — |
| Foreign governments | 524,483 |
| | 98,714 |
| | (46 | ) | | 623,151 |
| | — |
| Asset-backed | 2,782 |
| | 1,203 |
| | (167 | ) | | 3,818 |
| | 1,158 |
| Commercial mortgage-backed | 40,872 |
| | 576 |
| | (41 | ) | | 41,407 |
| | — |
| Residential mortgage-backed | 893,167 |
| | 63,020 |
| | (57 | ) | | 956,130 |
| | 13,840 |
| U.S. corporate | 5,110,983 |
| | 659,093 |
| | (5,118 | ) | | 5,764,958 |
| | 16,232 |
| Foreign corporate | 1,610,866 |
| | 219,242 |
| | (2,192 | ) | | 1,827,916 |
| | 2,125 |
| Total fixed maturity securities | $ | 8,835,922 |
| | $ | 1,091,363 |
| | $ | (7,694 | ) | | $ | 9,919,591 |
| | $ | 33,355 |
| Equity securities: | | | | | | | | | | Common stocks | $ | 12,255 |
| | $ | 8,561 |
| | $ | (1 | ) | | $ | 20,815 |
| | $ | — |
| Non-redeemable preferred stocks | 380,525 |
| | 50,022 |
| | (745 | ) | | 429,802 |
| | — |
| Total equity securities | $ | 392,780 |
| | $ | 58,583 |
| | $ | (746 | ) | | $ | 450,617 |
| | $ | — |
| | | December 31, 2015 | | Cost or Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | OTTI in AOCI (a) | Fixed maturity securities: | | | | | | | | | | U.S. government and government agencies and authorities | $ | 150,681 |
| | $ | 3,891 |
| | $ | (537 | ) | | $ | 154,035 |
| | $ | — |
| States, municipalities and political subdivisions | 647,335 |
| | 48,389 |
| | (94 | ) | | 695,630 |
| | — |
| Foreign governments | 497,785 |
| | 65,188 |
| | (723 | ) | | 562,250 |
| | — |
| Asset-backed | 3,499 |
| | 1,367 |
| | (204 | ) | | 4,662 |
| | 1,285 |
| Commercial mortgage-backed | 22,169 |
| | 352 |
| | — |
| | 22,521 |
| | — |
| Residential mortgage-backed | 953,247 |
| | 48,676 |
| | (3,409 | ) | | 998,514 |
| | 15,343 |
| U.S. corporate | 5,429,783 |
| | 513,254 |
| | (73,344 | ) | | 5,869,693 |
| | 15,705 |
| Foreign corporate | 1,766,296 |
| | 164,295 |
| | (22,568 | ) | | 1,908,023 |
| | 2,180 |
| Total fixed maturity securities | $ | 9,470,795 |
| | $ | 845,412 |
| | $ | (100,879 | ) | | $ | 10,215,328 |
| | $ | 34,513 |
| Equity securities: | | | | | | | | | | Common stocks | $ | 13,048 |
| | $ | 6,623 |
| | $ | (7 | ) | | $ | 19,664 |
| | $ | — |
| Non-redeemable preferred stocks | 437,515 |
| | 45,495 |
| | (2,617 | ) | | 480,393 |
| | — |
| Total equity securities | $ | 450,563 |
| | $ | 52,118 |
| | $ | (2,624 | ) | | $ | 500,057 |
| | $ | — |
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| | (a) | Represents the amount of OTTI recognized in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date |
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Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity |
The cost or amortized cost and fair value of fixed maturity securities at September 30, 2016 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. | | | | | | | | | | Cost or Amortized Cost | | Fair Value | Due in one year or less | $ | 426,548 |
| | $ | 431,700 |
| Due after one year through five years | 1,730,460 |
| | 1,820,154 |
| Due after five years through ten years | 2,150,767 |
| | 2,279,393 |
| Due after ten years | 3,591,326 |
| | 4,386,989 |
| Total | 7,899,101 |
| | 8,918,236 |
| Asset-backed | 2,782 |
| | 3,818 |
| Commercial mortgage-backed | 40,872 |
| | 41,407 |
| Residential mortgage-backed | 893,167 |
| | 956,130 |
| Total | $ | 8,835,922 |
| | $ | 9,919,591 |
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Proceeds from Sales of Available-For-Sale Securities and the Gross Realized Gains and Gross Realized Losses |
The following table summarizes the proceeds from sales of available-for-sale securities and the gross realized gains and gross realized losses that have been recognized in the statement of operations as a result of those sales: | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2016 | | 2015 | | 2016 | | 2015 | Proceeds from sales | $ | 480,593 |
| | $ | 621,194 |
| | $ | 3,354,841 |
| | $ | 1,978,183 |
| Gross realized gains (a) | 10,298 |
| | 15,097 |
| | 201,282 |
| | 41,352 |
| Gross realized losses (b) | 1,432 |
| | 6,707 |
| | 33,003 |
| | 18,150 |
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| | (a) | Nine months ended September 30, 2016 gross realized gains includes $150,701 related to the sale of Assurant Employee Benefits as described in Note 5. |
| | (b) | Nine months ended September 30, 2016 gross realized losses includes $16,427 related to the sale of Assurant Employee Benefits as described in Note 5. |
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Net Realized Gains (Losses), Including Other-Than-Temporary Impairments |
The following table sets forth the net realized gains (losses), including OTTI, recognized in the statement of operations as follows: | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2016 | | 2015 | | 2016 | | 2015 | Net realized gains (losses) related to sales and other: | | | | | | | | Fixed maturity securities | $ | 8,737 |
| | $ | 5,638 |
| | $ | 154,511 |
| | $ | 17,897 |
| Equity securities | (203 | ) | | 1,449 |
| | 12,940 |
| | 3,403 |
| Commercial mortgage loans on real estate | 62 |
| | — |
| | 21,607 |
| | — |
| Other investments | 2,108 |
| | (177 | ) | | 5,691 |
| | 4,134 |
| Total net realized gains related to sales and other (a) | 10,704 |
| | 6,910 |
| | 194,749 |
| | 25,434 |
| Net realized losses related to other-than-temporary impairments: | | | | | | | | Fixed maturity securities | — |
| | (707 | ) | | (701 | ) | | (3,277 | ) | Total net realized losses related to other-than-temporary impairments | — |
| | (707 | ) | | (701 | ) | | (3,277 | ) | Total net realized gains | $ | 10,704 |
| | $ | 6,203 |
| | $ | 194,048 |
| | $ | 22,157 |
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| | (a) | Nine months ended September 30, 2016 net gains includes $146,727 related to the sale of Assurant Employee Benefits as described in Note 5. |
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Credit Loss Impairments Recognized |
The following table sets forth the amount of credit loss impairments recognized within the results of operations on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in AOCI, and the corresponding changes in such amounts. | | | | | | | | | | Three Months Ended September 30, | | 2016 | | 2015 | Balance, June 30, | $ | 29,104 |
| | $ | 34,308 |
| Additions for credit loss impairments recognized in the current period on securities not previously impaired | — |
| | 51 |
| Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | (851 | ) | | (656 | ) | Reductions for credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | (597 | ) | | (90 | ) | Balance, September 30, | $ | 27,656 |
| | $ | 33,613 |
| | | Nine Months Ended September 30, | | 2016 | | 2015 | Balance, January 1, | $ | 32,377 |
| | $ | 35,424 |
| Additions for credit loss impairments recognized in the current period on securities previously impaired | 554 |
| | — |
| Additions for credit loss impairments recognized in the current period on securities not previously impaired | — |
| | 2,621 |
| Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | (2,169 | ) | | (1,731 | ) | Reductions for credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | (3,106 | ) | | (2,701 | ) | Balance, September 30, | $ | 27,656 |
| | $ | 33,613 |
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Investment Category and Duration of Gross Unrealized Losses on Fixed Maturity Securities and Equity Securities |
The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities and equity securities at September 30, 2016 and December 31, 2015 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2016 | | Less than 12 months | | 12 Months or More | | Total | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | Fixed maturity securities: | | | | | | | | | | | | U.S. government and government agencies and authorities | $ | 12,003 |
| | $ | (20 | ) | | $ | — |
| | $ | — |
| | $ | 12,003 |
| | $ | (20 | ) | States, municipalities and political subdivisions | 3,947 |
| | (53 | ) | | — |
| | — |
| | 3,947 |
| | (53 | ) | Foreign governments | 58,031 |
| | (2 | ) | | 6,919 |
| | (44 | ) | | 64,950 |
| | (46 | ) | Asset-backed | — |
| | — |
| | 1,014 |
| | (167 | ) | | 1,014 |
| | (167 | ) | Commercial mortgage-backed | 16,784 |
| | (41 | ) | | — |
| | — |
| | 16,784 |
| | (41 | ) | Residential mortgage-backed | 34,177 |
| | (50 | ) | | 780 |
| | (7 | ) | | 34,957 |
| | (57 | ) | U.S. corporate | 299,506 |
| | (2,279 | ) | | 70,774 |
| | (2,839 | ) | | 370,280 |
| | (5,118 | ) | Foreign corporate | 70,303 |
| | (449 | ) | | 20,221 |
| | (1,743 | ) | | 90,524 |
| | (2,192 | ) | Total fixed maturity securities | $ | 494,751 |
| | $ | (2,894 | ) | | $ | 99,708 |
| | $ | (4,800 | ) | | $ | 594,459 |
| | $ | (7,694 | ) | Equity securities: | | | | | | | | | | | | Common stock | $ | 339 |
| | $ | (1 | ) | | $ | — |
| | $ | — |
| | $ | 339 |
| | $ | (1 | ) | Non-redeemable preferred stocks | 11,499 |
| | (105 | ) | | 13,762 |
| | (640 | ) | | 25,261 |
| | (745 | ) | Total equity securities | $ | 11,838 |
| | $ | (106 | ) | | $ | 13,762 |
| | $ | (640 | ) | | $ | 25,600 |
| | $ | (746 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2015 | | Less than 12 months | | 12 Months or More | | Total | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | Fixed maturity securities: | | | | | | | | | | | | U.S. government and government agencies and authorities | $ | 90,008 |
| | $ | (465 | ) | | $ | 5,564 |
| | $ | (72 | ) | | $ | 95,572 |
| | $ | (537 | ) | States, municipalities and political subdivisions | 6,881 |
| | (94 | ) | | — |
| | — |
| | 6,881 |
| | (94 | ) | Foreign governments | 24,071 |
| | (347 | ) | | 22,239 |
| | (376 | ) | | 46,310 |
| | (723 | ) | Asset-backed | — |
| | — |
| | 1,136 |
| | (204 | ) | | 1,136 |
| | (204 | ) | Residential mortgage-backed | 260,620 |
| | (3,179 | ) | | 11,147 |
| | (230 | ) | | 271,767 |
| | (3,409 | ) | U.S. corporate | 1,287,545 |
| | (65,631 | ) | | 38,224 |
| | (7,713 | ) | | 1,325,769 |
| | (73,344 | ) | Foreign corporate | 348,912 |
| | (19,616 | ) | | 15,805 |
| | (2,952 | ) | | 364,717 |
| | (22,568 | ) | Total fixed maturity securities | $ | 2,018,037 |
| | $ | (89,332 | ) | | $ | 94,115 |
| | $ | (11,547 | ) | | $ | 2,112,152 |
| | $ | (100,879 | ) | Equity securities: | | | | | | | | | | | | Common stock | $ | 623 |
| | $ | (7 | ) | | $ | — |
| | $ | — |
| | $ | 623 |
| | $ | (7 | ) | Non-redeemable preferred stocks | 63,665 |
| | (1,632 | ) | | 13,806 |
| | (985 | ) | | 77,471 |
| | (2,617 | ) | Total equity securities | $ | 64,288 |
| | $ | (1,639 | ) | | $ | 13,806 |
| | $ | (985 | ) | | $ | 78,094 |
| | $ | (2,624 | ) |
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Loan-To-Value and Average Debt-Service Coverage Ratios |
The following summarizes the Company's loan-to-value and average debt-service coverage ratios as of the dates indicated: | | | | | | | | | | | | September 30, 2016 | Loan-to-Value | Carrying Value | | % of Gross Mortgage Loans | | Debt-Service Coverage Ratio | 70% and less | $ | 557,398 |
| | 93.3 | % | | 1.94 |
| 71 – 80% | 15,876 |
| | 2.6 | % | | 1.17 |
| 81 – 95% | 19,497 |
| | 3.3 | % | | 1.23 |
| Greater than 95% | 4,816 |
| | 0.8 | % | | 3.86 |
| Gross commercial mortgage loans | 597,587 |
| | 100 | % | | 1.91 |
| Less valuation allowance | (2,520 | ) | | | | | Net commercial mortgage loans | $ | 595,067 |
| | | | | | | December 31, 2015 | Loan-to-Value | Carrying Value | | % of Gross Mortgage Loans | | Debt-Service Coverage Ratio | 70% and less | $ | 1,101,572 |
| | 95.5 | % | | 2.01 |
| 71 – 80% | 39,080 |
| | 3.4 | % | | 1.19 |
| 81 – 95% | 8,370 |
| | 0.7 | % | | 1.05 |
| Greater than 95% | 4,816 |
| | 0.4 | % | | 3.52 |
| Gross commercial mortgage loans | 1,153,838 |
| | 100 | % | | 1.98 |
| Less valuation allowance | (2,582 | ) | | | | | Net commercial mortgage loans | $ | 1,151,256 |
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