XML 65 R47.htm IDEA: XBRL DOCUMENT v3.6.0.2
Investments (Tables)
12 Months Ended
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
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:
 
December 31, 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
$
172,782

 
$
3,389

 
$
(1,285
)
 
$
174,886

 
$

States, municipalities and political
  subdivisions
446,882

 
29,639

 
(446
)
 
476,075

 

Foreign governments
508,871

 
60,462

 
(865
)
 
568,468

 

Asset-backed
2,658

 
1,157

 
(138
)
 
3,677

 
1,117

Commercial mortgage-backed
39,267

 
142

 
(993
)
 
38,416

 

Residential mortgage-backed
1,071,179

 
38,130

 
(7,997
)
 
1,101,312

 
12,758

U.S. corporate
5,022,769

 
454,115

 
(15,634
)
 
5,461,250

 
15,616

Foreign corporate
1,606,429

 
147,174

 
(5,542
)
 
1,748,061

 
2,248

Total fixed maturity securities
$
8,870,837

 
$
734,208

 
$
(32,900
)
 
$
9,572,145

 
$
31,739

Equity securities:
 
 
 
 
 
 
 
 
 
Common stocks
$
11,911

 
$
8,890

 
$
(7
)
 
$
20,794

 
$

Non-redeemable preferred stocks
369,920

 
31,767

 
(1,120
)
 
400,567

 

Total equity securities
$
381,831

 
$
40,657

 
$
(1,127
)
 
$
421,361

 
$

 
 
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

 
$

(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.

Amortized Cost And Fair Value Of Fixed Maturity Securities By Contractual Maturity
The cost or amortized cost and fair value of available-for-sale fixed maturity securities in an unrealized loss position at December 31, 2016, by contractual maturity, is shown below:
 
Cost or
Amortized
Cost
 
Fair Value
Due in one year or less
$
103,273

 
$
103,200

Due after one year through five years
421,271

 
418,100

Due after five years through ten years
479,658

 
471,605

Due after ten years
442,516

 
430,041

Total
1,446,718

 
1,422,946

Asset-backed
1,117

 
979

Commercial mortgage-backed
34,199

 
33,206

Residential mortgage-backed
357,715

 
349,718

Total
$
1,839,749

 
$
1,806,849

The cost or amortized cost and fair value of fixed maturity securities at December 31, 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
$
428,433

 
$
433,479

Due after one year through five years
1,761,804

 
1,823,218

Due after five years through ten years
2,001,060

 
2,067,674

Due after ten years
3,566,436

 
4,104,369

Total
7,757,733

 
8,428,740

Asset-backed
2,658

 
3,677

Commercial mortgage-backed
39,267

 
38,416

Residential mortgage-backed
1,071,179

 
1,101,312

Total
$
8,870,837

 
$
9,572,145

Categories Of Net Investment Income
Major categories of net investment income were as follows:
 
Years Ended December 31,
 
2016
 
2015
 
2014
Fixed maturity securities
$
419,347

 
$
486,165

 
$
522,309

Equity securities
25,161

 
29,957

 
28,014

Commercial mortgage loans on real estate
41,669

 
72,658

 
73,959

Policy loans
2,577

 
2,478

 
2,939

Short-term investments
5,508

 
2,033

 
1,950

Other investments
21,671

 
37,759

 
34,527

Cash and cash equivalents
17,462

 
18,416

 
18,556

Total investment income
533,395

 
649,466

 
682,254

Investment expenses
(17,717
)
 
(23,249
)
 
(25,825
)
Net investment income
$
515,678

 
$
626,217

 
$
656,429

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:
 
For the Years Ended December 31,
 
2016
 
2015
 
2014
Proceeds from sales
$
4,610,681

 
$
2,568,166

 
$
1,995,368

Gross realized gains (a)
209,475

 
65,097

 
69,184

Gross realized losses (b)
65,206

 
31,657

 
10,681


(a)
Twelve months ended December 31, 2016 gross realized gains includes $150,701 related to the sale of Assurant Employee Benefits as described in Note 5.
(b)
Twelve months ended December 31, 2016 gross realized losses includes $16,427 related to the sale of Assurant Employee Benefits as described in Note 5.
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:
 
Years Ended December 31,
 
2016
 
2015
 
2014
Net realized gains (losses) related to sales and other:
 
 
 
 
 
Fixed maturity securities
$
128,899

 
$
13,322

 
$
54,200

Equity securities
17,262

 
19,016

 
6,190

Commercial mortgage loans on real estate
21,823

 
817

 
532

Other investments
1,073

 
3,695

 
(109
)
Total net realized gains related to sales and other (a)
169,057

 
36,850

 
60,813

Net realized losses related to other-than-temporary impairments:
 
 
 
 
 
Fixed maturity securities
(700
)
 
(5,024
)
 
(30
)
Other investments
(6,174
)
 

 

Total net realized losses related to other-than-temporary impairments
(6,874
)
 
(5,024
)
 
(30
)
Total net realized gains
$
162,183

 
$
31,826

 
$
60,783


(a)
Twelve months ended December 31, 2016 net gains includes $146,727 related to the sale of Assurant Employee Benefits as described in Note 5.
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:
 
Years Ended December 31,
 
2016
 
2015
 
2014
Balance, beginning of year
$
32,377

 
$
35,424

 
$
45,278

Additions for credit loss impairments recognized in the current period
  on securities previously impaired
554

 

 
30

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
(3,590
)
 
(2,398
)
 
(5,248
)
Reductions for credit loss impairments previously recognized on
  securities which matured, paid down, prepaid or were sold during the
  period
(4,397
)
 
(3,270
)
 
(4,636
)
Balance, end of year
$
24,944

 
$
32,377

 
$
35,424

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 December 31, 2016 and 2015 were as follows:
 
December 31, 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
$
91,038

 
$
(1,285
)
 
$

 
$

 
$
91,038

 
$
(1,285
)
States, municipalities and political
  subdivisions
16,914

 
(446
)
 

 

 
16,914

 
(446
)
Foreign governments
98,759

 
(847
)
 
6,844

 
(18
)
 
105,603

 
(865
)
Asset-backed

 

 
979

 
(138
)
 
979

 
(138
)
Commercial mortgage-backed
33,206

 
(993
)
 

 

 
33,206

 
(993
)
Residential mortgage-backed
347,522

 
(7,892
)
 
2,196

 
(105
)
 
349,718

 
(7,997
)
U.S. corporate
940,434

 
(13,125
)
 
34,071

 
(2,509
)
 
974,505

 
(15,634
)
Foreign corporate
227,313

 
(4,584
)
 
7,573

 
(958
)
 
234,886

 
(5,542
)
Total fixed maturity securities
$
1,755,186

 
$
(29,172
)
 
$
51,663

 
$
(3,728
)
 
$
1,806,849

 
$
(32,900
)
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
Common stock
$
673

 
$
(7
)
 
$

 
$

 
$
673

 
$
(7
)
Non-redeemable preferred stocks
64,419

 
(1,083
)
 
1,940

 
(37
)
 
66,359

 
(1,120
)
Total equity securities
$
65,092

 
$
(1,090
)
 
$
1,940

 
$
(37
)
 
$
67,032

 
$
(1,127
)

 
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
)
Credit Quality Indicators For Commercial Mortgage Loans
The following summarizes the Company's loan-to-value and average debt-service coverage ratios as of the dates indicated:
 
December 31, 2016
Loan-to-Value
Carrying
Value
 
% of Gross
Mortgage
Loans
 
Debt-Service
Coverage Ratio
70% and less
$
595,527

 
95.1
%
 
1.92

71 – 80%
9,868

 
1.6
%
 
1.15

81 – 95%
16,126

 
2.5
%
 
1.27

Greater than 95%
4,816

 
0.8
%
 
3.86

Gross commercial mortgage loans
626,337

 
100.0
%
 
1.91

Less valuation allowance
(2,304
)
 
 
 
 
Net commercial mortgage loans
$
624,033

 
 
 
 
 
 
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

 
100.0
%
 
1.98

Less valuation allowance
(2,582
)
 
 
 
 
Net commercial mortgage loans
$
1,151,256