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Investments (Tables)
 3 Months Ended
Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Summary of Fixed Maturities and Equity Securities Available for Sale by Cost or Amortized Cost and Estimated Fair Value
A summary of fixed maturities available for sale by cost or amortized cost and estimated fair value at March 31, 2017 is as follows:
Portfolio Composition as of March 31, 2017
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value(1)
 
% of Total
Fixed
Maturities(2)
Fixed maturities available for sale:
 
 
 
 
 
 
 
 
 
U.S. Government direct, guaranteed, and government-sponsored enterprises
$
385,755

 
$
1,830

 
$
(6,424
)
 
$
381,161

 
3
States, municipalities, and political subdivisions
1,184,062

 
120,066

 
(1,029
)
 
1,303,099

 
8
Foreign governments
20,066

 
1,466

 
(8
)
 
21,524

 
—
Corporates, by sector:
 
 
 
 
 
 
 
 
 
Financial
3,137,495

 
331,704

 
(34,260
)
 
3,434,939

 
21
Utilities
1,896,115

 
268,397

 
(9,842
)
 
2,154,670

 
14
Energy
1,589,982

 
145,310

 
(31,320
)
 
1,703,972

 
11
Other corporate sectors
5,824,044

 
494,335

 
(59,618
)
 
6,258,761

 
39
Total corporates
12,447,636

 
1,239,746

 
(135,040
)
 
13,552,342

 
85
Collateralized debt obligations
59,976

 
17,515

 
(9,648
)
 
67,843

 
—
Other asset-backed securities
104,476

 
1,072

 
(361
)
 
105,187

 
1
Redeemable preferred stocks, by sector:
 
 
 
 
 
 
 
 
 
Financial
371,691

 
48,325

 
(7,011
)
 
413,005

 
3
Utilities
28,588

 
1,628

 
(246
)
 
29,970

 
—
Total redeemable preferred stocks
400,279

 
49,953

 
(7,257
)
 
442,975

 
3
Total fixed maturities
$
14,602,250

 
$
1,431,648

 
$
(159,767
)
 
$
15,874,131

 
100
(1) Amounts reported on the balance sheet.
(2) At fair value.
Schedule of Fixed Maturities by Contractual Maturity Date
A schedule of fixed maturities available for sale by contractual maturity date at March 31, 2017 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.
 
March 31, 2017
 
Amortized
Cost
 
Fair Value
Fixed maturities available for sale:
 
 
 
Due in one year or less
$
88,952

 
$
91,746

Due from one to five years
628,487

 
675,601

Due from five to ten years
1,335,053

 
1,474,252

Due from ten to twenty years
4,256,853

 
4,794,890

Due after twenty years
8,127,226

 
8,663,281

Mortgage-backed and asset-backed securities
165,679

 
174,361

 
$
14,602,250

 
$
15,874,131
Schedule of Selected Information about Sales of Fixed Maturities
Selected information about sales of fixed maturities available for sale is as follows.
Three Months Ended March 31,
 
2017
 
2016
Proceeds from sales
$
—

 
$
14,331

Gross realized gains
—

 
495

Gross realized losses
—

 
(214
)
Schedule of Assets Measured at Fair Value on Recurring Basis
The following table represents the fair value of fixed maturities available for sale measured on a recurring basis.
Fair Value Measurements at March 31, 2017 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
Bonds:
 
 
 
 
 
 
 
 
U.S. Government direct, guaranteed, and government-sponsored enterprises
 
$
4

 
$
381,157

 
$
—

 
$
381,161

States, municipalities, and political subdivisions
 
—

 
1,303,099

 
—

 
1,303,099

Foreign governments
 
—

 
21,524

 
—

 
21,524

Corporates, by sector:
 


 


 


 


Financial
 
—

 
3,372,832

 
62,107

 
3,434,939

Utilities
 
—

 
2,000,220

 
154,450

 
2,154,670

Energy
 
—

 
1,663,113

 
40,859

 
1,703,972

Other corporate sectors
 
—

 
5,930,189

 
328,572

 
6,258,761

Total corporates
 
—

 
12,966,354

 
585,988

 
13,552,342

Collateralized debt obligations
 
—

 
—

 
67,843

 
67,843

Other asset-backed securities
 
—

 
91,187

 
14,000

 
105,187

Redeemable preferred stocks, by sector:
 


 


 


 


Financial
 
—

 
413,005

 
—

 
413,005

Utilities
 
—

 
29,970

 
—

 
29,970

Total redeemable preferred stocks
 
—

 
442,975

 
—

 
442,975

Total fixed maturities
 
$
4

 
$
15,206,296

 
$
667,831

 
$
15,874,131

Percent of total
 
—
%
 
95.8
%
 
4.2
%
 
100.0
%
Schedule of Analysis of Changes in Fair Value Measurements 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)
 
Three Months Ended March 31, 2017
 
Asset-
Backed
Securities
 
Collateralized
Debt
Obligations
 
Corporates(1)
 
Total
Balance at January 1, 2017
$
—

 
$
63,503

 
$
559,600

 
$
623,103

Total gains or losses:
 
 
 
 
 
 
 
Included in realized gains/losses
—

 
—

 
—

 
—

Included in other comprehensive income
—

 
5,090

 
6,275

 
11,365

Acquisitions
14,000

 
—

 
21,666

 
35,666

Sales
—

 
—

 
—

 
—

Amortization
—

 
1,249

 
4

 
1,253

Other(2)
—

 
(1,999
)
 
(1,557
)
 
(3,556
)
Transfers in and/or out of Level 3(3)
—

 
—

 
—

 
—

Balance at March 31, 2017
$
14,000

 
$
67,843

 
$
585,988

 
$
667,831

Percent of total fixed maturities
0.1
%
 
0.4
%
 
3.7
%
 
4.2
%
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2016
 
Asset-
Backed
Securities
 
Collateralized
Debt
Obligations
 
Corporates(1)
 
Total
Balance at January 1, 2016
$
—

 
$
70,382

 
$
530,806

 
$
601,188

Total gains or losses:
 
 
 
 
 
 
 
Included in realized gains/losses
—

 
—

 
—

 
—

Included in other comprehensive income
—

 
(3,598
)
 
9,568

 
5,970

Acquisitions
—

 
—

 
15,800

 
15,800

Sales
—

 
—

 
—

 
—

Amortization
—

 
1,334

 
4

 
1,338

Other(2)
—

 
(2,626
)
 
(1,377
)
 
(4,003
)
Transfers in and/or out of Level 3(3)
—

 
—

 
—

 
—

Balance at March 31, 2016
$
—

 
$
65,492

 
$
554,801

 
$
620,293

Percent of total fixed maturities
—
%
 
0.5
%
 
3.8
%
 
4.3
%
(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 Information About Investments in Unrealized Loss Position
The following table discloses information about fixed maturities available for sale in an unrealized loss position.
 
 
Less than
Twelve
Months
 
Twelve
Months
or Longer
 
Total
Number of issues (CUSIP numbers) held:
 
 
 
 
 
 
As of March 31, 2017
 
346

 
87

 
433

As of December 31, 2016
 
407

 
94

 
501
Schedule of Unrealized Investment Losses by Class of Investment
The following table discloses unrealized investment losses by class and major sector of fixed maturities available for sale at March 31, 2017 for the period of time in a loss position. Torchmark considers these investments to be only temporarily impaired.
Analysis of Gross Unrealized Investment Losses
At March 31, 2017
 
 
 
Less than
Twelve Months
 
Twelve Months
or Longer
 
Total
Description of Securities
 
Fair Value
 
Unrealized
Loss
 
Fair Value
 
Unrealized
Loss
 
Fair Value
 
Unrealized
Loss
Investment grade securities:
 
 
 
 
 
 
 
 
 
 
 
 
Bonds:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government direct, guaranteed, and government-sponsored enterprises
 
$
243,425

 
$
(5,865
)
 
$
1,441

 
$
(559
)
 
$
244,866

 
$
(6,424
)
States, municipalities and political subdivisions
 
30,822

 
(779
)
 
668

 
(32
)
 
31,490

 
(811
)
Foreign governments
 
2,187

 
(8
)
 
—

 
—

 
2,187

 
(8
)

 
 
 
 
 
 
 
 
 
 
 
 
Corporates, by sector:
 
 
 
 
 
 
 
 
 
 
 
 
Financial
 
335,653

 
(7,863
)
 
80,362

 
(3,632
)
 
416,015

 
(11,495
)
Utilities
 
246,001

 
(7,937
)
 
16,675

 
(1,905
)
 
262,676

 
(9,842
)
Energy
 
57,535

 
(955
)
 
141,685

 
(12,049
)
 
199,220

 
(13,004
)
Other corporate sectors
 
1,301,093

 
(46,268
)
 
70,324

 
(5,124
)
 
1,371,417

 
(51,392
)
Total corporates
 
1,940,282

 
(63,023
)
 
309,046

 
(22,710
)
 
2,249,328

 
(85,733
)
Other asset-backed securities
 
24,580

 
(361
)
 
—

 
—

 
24,580

 
(361
)
Redeemable preferred stocks, by sector:
 
 
 
 
 
 
 
 
 
 
 
 
Financial
 
23,985

 
(6
)
 
—

 
—

 
23,985

 
(6
)
Utilities
 
5,842

 
(246
)
 
—

 
—

 
5,842

 
(246
)
Total redeemable preferred stocks
 
29,827

 
(252
)
 
—

 
—

 
29,827

 
(252
)
Total investment grade securities
 
2,271,123

 
(70,288
)
 
311,155

 
(23,301
)
 
2,582,278

 
(93,589
)
Below investment grade securities:
 
 
 
 
 
 
 
 
 
 
 
 
Bonds:
 
 
 
 
 
 
 
 
 
 
 
 
States, municipalities and political subdivisions
 
—

 
—

 
333

 
(218
)
 
333

 
(218
)
Corporates, by sector:
 


 


 


 


 
 
 
 
Financial
 
—

 
—

 
82,995

 
(22,765
)
 
82,995

 
(22,765
)
Energy
 
10,563

 
(123
)
 
88,907

 
(18,193
)
 
99,470

 
(18,316
)
Other corporate sectors
 
—

 
—

 
115,418

 
(8,226
)
 
115,418

 
(8,226
)
Total corporates
 
10,563

 
(123
)
 
287,320

 
(49,184
)
 
297,883

 
(49,307
)
Collateralized debt obligations
 
—

 
—

 
10,351

 
(9,648
)
 
10,351

 
(9,648
)
Redeemable preferred stocks, by sector:
 
 
 
 
 
 
 
 
 
 
 
 
Financial
 
10,000

 
—

 
20,119

 
(7,005
)
 
30,119

 
(7,005
)
Total redeemable preferred stocks
 
10,000

 
—

 
20,119

 
(7,005
)
 
30,119

 
(7,005
)
Total below investment grade securities
 
20,563

 
(123
)
 
318,123

 
(66,055
)
 
338,686

 
(66,178
)
Total fixed maturities
 
$
2,291,686

 
$
(70,411
)
 
$
629,278

 
$
(89,356
)
 
$
2,920,964

 
$
(159,767
)