Investments (Tables)

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Summary of Fixed Maturities and Equity Securities Available for Sale by Component

A summary of fixed maturities and equity securities available for sale by cost or amortized cost and estimated fair value at June 30, 2015 is as follows:

Portfolio Composition as of June 30, 2015



	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		% of Total Fixed Maturities*
Fixed maturities available for sale:
Bonds:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	371,529	$	449	$	(17,422	)	$	354,556	3
States, municipalities, and political subdivisions	1,298,664		132,850		(2,151		)	1,429,363		10
Foreign governments	23,037		1,425		(379		)	24,083		—

Corporates, by sector:
Financial	2,675,863		314,572		(38,366		)	2,952,069		21
Utilities	2,138,355		258,616		(27,006		)	2,369,965		17
Energy	1,541,450		115,442		(46,261		)	1,610,631		11
Other corporate sectors	4,514,626		360,704		(110,304		)	4,765,026		34
Total corporates	10,870,294		1,049,334		(221,937		)	11,697,691		83

Collateralized debt obligations	64,782		16,525		(7,639		)	73,668		—
Other asset-backed securities	19,450		1,182		—			20,632		—

Redeemable preferred stocks, by sector:
Financial	450,496		48,332		(6,754		)	492,074		4
Utilities	28,666		751		(22		)	29,395		—
Total redeemable preferred stocks	479,162		49,083		(6,776		)	521,469		4

Total fixed maturities	13,126,918		1,250,848		(256,304		)	14,121,462		100
Equity securities	776		769		—			1,545
Total fixed maturities and equity securities	$	13,127,694	$	1,251,617	$	(256,304	)	$	14,123,007

* At fair value

Schedule of Fixed Maturities by Contractual Maturity

A schedule of fixed maturities by contractual maturity date at June 30, 2015 is shown below on an amortized cost basis and on a fair value basis. Actual maturity dates could differ from contractual maturities due to call or prepayment provisions.



	Amortized Cost		Fair Value
Fixed maturities available for sale:
Due in one year or less	$	72,803	$	73,790
Due from one to five years	533,791		592,958
Due from five to ten years	972,641		1,063,069
Due from ten to twenty years	3,827,375		4,267,617
Due after twenty years	7,633,945		8,027,399
Mortgage-backed and asset-backed securities	86,363		96,629
	$	13,126,918	$	14,121,462

Schedule of Selected Information about Sales of Fixed Maturities

Selected information about sales of fixed maturities is as follows.



For the Six Months Ended June 30,
	2015			2014
Proceeds from sales	$	14,287		$	28,194
Gross realized gains	82			16,286
Gross realized losses	(104		)	(3		)

Assets Measured at Fair Value on Recurring Basis

The following table represents assets measured at fair value on a recurring basis.

Fair Value Measurements at June 30, 2015 Using:



Description	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale:
Bonds:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—		$	354,556		$	—		$	354,556
States, municipalities, and political subdivisions	—			1,429,363			—			1,429,363
Foreign governments	—			24,083			—			24,083

Corporates, by sector:
Financial	—			2,883,531			68,538			2,952,069
Utilities	25,174			2,209,586			135,205			2,369,965
Energy	—			1,583,301			27,330			1,610,631
Other corporate sectors	—			4,474,070			290,956			4,765,026
Total corporates	25,174			11,150,488			522,029			11,697,691

Collateralized debt obligations	—			—			73,668			73,668
Other asset-backed securities	—			20,632			—			20,632

Redeemable preferred stocks, by sector:
Financial	15,226			476,848			—			492,074
Utilities	—			29,395			—			29,395
Total redeemable preferred stocks	15,226			506,243			—			521,469

Total fixed maturities	40,400			13,485,365			595,697			14,121,462
Equity securities	712			—			833			1,545
Total fixed maturities and equity securities	$	41,112		$	13,485,365		$	596,530		$	14,123,007
Percent of total	0.3		%	95.5		%	4.2		%	100.0		%

Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The following table represents an analysis of changes in fair value measurements using significant unobservable inputs (Level 3).

Analysis of Changes in Fair Value Measurements Using

Significant Unobservable Inputs (Level 3)



	For the Six Months Ended June 30, 2015
	Collateralized debt obligations			Corporates ⁽¹⁾			Equities			Total
Balance at January 1, 2015	$	63,232		$	512,714		$	833		$	576,779
Total gains or losses:
Included in realized gains/losses	—			—			—			—
Included in other comprehensive income	13,531			(8,426		)	—			5,105
Acquisitions	—			19,400			—			19,400
Amortization	2,810			7			—			2,817
Other ⁽²⁾	(5,905		)	(1,666		)	—			(7,571		)
Transfers in and/or out of Level 3 ⁽³⁾	—			—			—			—
Balance at June 30, 2015	$	73,668		$	522,029		$	833		$	596,530
Percent of total fixed maturity and equity securities	0.5		%	3.7		%	—		%	4.2		%

	For the Six Months Ended June 30, 2014
	Collateralized debt obligations			Corporates ⁽¹⁾			Equities			Total
Balance at January 1, 2014	$	58,205		$	300,300		$	776		$	359,281
Total gains or losses:
Included in realized gains/losses	15,924			1			—			15,925
Included in other comprehensive income	8,702			19,513			57			28,272
Acquisitions	—			90,680			—			90,680
Sales	(16,049		)	(1		)	—			(16,050		)
Amortization	2,668			5			—			2,673
Other ⁽²⁾	(3,231		)	(1,165		)	—			(4,396		)
Transfers in and/or out of Level 3 ⁽³⁾	—			—			—			—
Balance at June 30, 2014	$	66,219		$	409,333		$	833		$	476,385
Percent of total fixed maturity and equity securities	0.5		%	2.9		%	—		%	3.4		%


(1)	Includes redeemable preferred stocks.


(2)	Includes capitalized interest, foreign exchange adjustments, and principal repayments.


(3)	Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available.

Schedule of Additional Information About Investments in Unrealized Loss Position

The following table discloses information about investments in an unrealized loss position.



	Less than Twelve Months	Twelve Months or Longer	Total
Number of issues (Cusip numbers) held:
As of June 30, 2015	407	61	468
As of December 31, 2014	80	173	253

Schedule of Unrealized Investment Losses by Class of Investment

The following table discloses unrealized investment losses by class of investment at June 30, 2015 for the period of time in a loss position. Torchmark does not view these investments as other-than-temporarily impaired.

Analysis of Gross Unrealized Investment Losses

At June 30, 2015



	Less than Twelve Months					Twelve Months or Longer					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Fixed maturities available for sale:
Investment grade:
Bonds:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	305,538	$	(16,522	)	$	14,642	$	(900	)	$	320,180	$	(17,422	)
States, municipalities and political subdivisions	79,844		(1,803		)	1,687		(112		)	81,531		(1,915		)
Foreign governments	4,134		(379		)	—		—			4,134		(379		)
Corporates, by sector:
Financial	334,577		(17,515		)	—		—			334,577		(17,515		)
Utilities	498,821		(27,006		)	—		—			498,821		(27,006		)
Energy	372,105		(30,440		)	59,712		(9,727		)	431,817		(40,167		)
Other corporate sectors	1,530,184		(96,962		)	45,852		(7,340		)	1,576,036		(104,302		)
Total corporates	2,735,687		(171,923		)	105,564		(17,067		)	2,841,251		(188,990		)
Redeemable preferred stocks, by sector:
Utilities	—		—			1,645		(22		)	1,645		(22		)
Total redeemable preferred stocks	—		—			1,645		(22		)	1,645		(22		)
Total investment grade	3,125,203		(190,627		)	123,538		(18,101		)	3,248,741		(208,728		)
Below investment grade:
Bonds:
States, municipalities and political subdivisions	—		—			319		(236		)	319		(236		)
Corporates, by sector:
Financial	—		—			84,947		(20,851		)	84,947		(20,851		)
Energy	55,653		(6,094		)	—		—			55,653		(6,094		)
Other corporate sectors	15,889		(823		)	57,213		(5,179		)	73,102		(6,002		)
Total corporates	71,542		(6,917		)	142,160		(26,030		)	213,702		(32,947		)
Collateralized debt obligations	—		—			12,361		(7,639		)	12,361		(7,639		)
Redeemable preferred stocks, by sector:
Financial	—		—			55,582		(6,754		)	55,582		(6,754		)
Total redeemable preferred stocks	—		—			55,582		(6,754		)	55,582		(6,754		)
Total below investment grade	71,542		(6,917		)	210,422		(40,659		)	281,964		(47,576		)
Total fixed maturities	3,196,745		(197,544		)	333,960		(58,760		)	3,530,705		(256,304		)
Equity securities	—		—			—		—			—		—
Total fixed maturities and equity securities	$	3,196,745	$	(197,544	)	$	333,960	$	(58,760	)	$	3,530,705	$	(256,304	)