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Investments (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2017 is as follows:
Portfolio Composition as of June 30, 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
$
387,331

 
$
8,552

 
$
(1,696
)
 
$
394,187

 
2
States, municipalities, and political subdivisions
1,182,708

 
128,175

 
(185
)
 
1,310,698

 
8
Foreign governments
20,720

 
1,592

 
—

 
22,312

 
—
Corporates, by sector:
 
 
 
 
 
 
 
 
 
Financial
3,152,297

 
413,004

 
(25,309
)
 
3,539,992

 
22
Utilities
1,909,247

 
314,825

 
(3,351
)
 
2,220,721

 
14
Energy
1,589,769

 
170,566

 
(35,952
)
 
1,724,383

 
11
Other corporate sectors
5,847,507

 
651,703

 
(20,017
)
 
6,479,193

 
40
Total corporates
12,498,820

 
1,550,098

 
(84,629
)
 
13,964,289

 
87
Collateralized debt obligations
59,871

 
16,677

 
(10,303
)
 
66,245

 
—
Other asset-backed securities
126,019

 
3,607

 
(15
)
 
129,611

 
1
Redeemable preferred stocks, by sector:
 
 
 
 
 
 
 
 
 
Financial
347,505

 
59,206

 
(5,849
)
 
400,862

 
2
Utilities
28,577

 
1,725

 
(220
)
 
30,082

 
—
Total redeemable preferred stocks
376,082

 
60,931

 
(6,069
)
 
430,944

 
2
Total fixed maturities
$
14,651,551

 
$
1,769,632

 
$
(102,897
)
 
$
16,318,286

 
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 June 30, 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.
 
June 30, 2017
 
Amortized
Cost
 
Fair Value
Fixed maturities available for sale:
 
 
 
Due in one year or less
$
143,830

 
$
148,150

Due after one year through five years
578,037

 
622,103

Due after five years through ten years
1,434,971

 
1,597,721

Due after ten years through twenty years
4,363,391

 
5,019,819

Due after twenty years
7,944,279

 
8,733,397

Mortgage-backed and asset-backed securities
187,043

 
197,096

 
$
14,651,551

 
$
16,318,286
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 
 June 30,
 
Six Months Ended 
 June 30,
 
2017
 
2016
 
2017
 
2016
Proceeds from sales
$
—

 
$
36,968

 
$
—

 
$
51,299

Gross realized gains
—

 
3,061

 
—

 
3,556

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 June 30, 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
 
$
—

 
$
394,187

 
$
—

 
$
394,187

States, municipalities, and political subdivisions
 
—

 
1,310,698

 
—

 
1,310,698

Foreign governments
 
—

 
22,312

 
—

 
22,312

Corporates, by sector:
 


 


 


 


Financial
 
—

 
3,477,619

 
62,373

 
3,539,992

Utilities
 
—

 
2,065,431

 
155,290

 
2,220,721

Energy
 
—

 
1,683,064

 
41,319

 
1,724,383

Other corporate sectors
 
—

 
6,151,889

 
327,304

 
6,479,193

Total corporates
 
—

 
13,378,003

 
586,286

 
13,964,289

Collateralized debt obligations
 
—

 
—

 
66,245

 
66,245

Other asset-backed securities
 
—

 
115,458

 
14,153

 
129,611

Redeemable preferred stocks, by sector:
 


 


 


 


Financial
 
—

 
400,862

 
—

 
400,862

Utilities
 
—

 
30,082

 
—

 
30,082

Total redeemable preferred stocks
 
—

 
430,944

 
—

 
430,944

Total fixed maturities
 
$
—

 
$
15,651,602

 
$
666,684

 
$
16,318,286

Percent of total
 
—
%
 
95.9
%
 
4.1
%
 
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)
 
Six Months Ended June 30, 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
261

 
3,597

 
11,637

 
15,495

Acquisitions
14,000

 
—

 
21,666

 
35,666

Sales
—

 
—

 
—

 
—

Amortization
—

 
2,481

 
8

 
2,489

Other(2)
(108
)
 
(3,336
)
 
(6,625
)
 
(10,069
)
Transfers in and/or out of Level 3(3)
—

 
—

 
—

 
—

Balance at June 30, 2017
$
14,153

 
$
66,245

 
$
586,286

 
$
666,684

Percent of total fixed maturities
0.1
%
 
0.4
%
 
3.6
%
 
4.1
%
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 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
—

 
(4,831
)
 
24,291

 
19,460

Acquisitions
—

 
—

 
15,800

 
15,800

Sales
—

 
—

 
—

 
—

Amortization
—

 
2,639

 
8

 
2,647

Other(2)
—

 
(4,127
)
 
(1,740
)
 
(5,867
)
Transfers in and/or out of Level 3(3)
—

 
—

 
—

 
—

Balance at June 30, 2016
$
—

 
$
64,063

 
$
569,165

 
$
633,228

Percent of total fixed maturities
—
%
 
0.4
%
 
3.7
%
 
4.1
%
(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 June 30, 2017
 
164

 
76

 
240

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 June 30, 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 June 30, 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
 
$
114,030

 
$
(1,194
)
 
$
1,501

 
$
(502
)
 
$
115,531

 
$
(1,696
)
States, municipalities and political subdivisions
 
13,502

 
(155
)
 
666

 
(30
)
 
14,168

 
(185
)
Foreign governments
 
—

 
—

 
—

 
—

 
—

 
—


 
 
 
 
 
 
 
 
 
 
 
 
Corporates, by sector:
 
 
 
 
 
 
 
 
 
 
 
 
Financial
 
123,632

 
(3,735
)
 
47,847

 
(1,157
)
 
171,479

 
(4,892
)
Utilities
 
120,890

 
(2,481
)
 
17,710

 
(870
)
 
138,600

 
(3,351
)
Energy
 
36,740

 
(486
)
 
137,991

 
(9,595
)
 
174,731

 
(10,081
)
Other corporate sectors
 
437,568

 
(11,357
)
 
69,796

 
(2,624
)
 
507,364

 
(13,981
)
Total corporates
 
718,830

 
(18,059
)
 
273,344

 
(14,246
)
 
992,174

 
(32,305
)
Other asset-backed securities
 
9,927

 
(15
)
 
—

 
—

 
9,927

 
(15
)
Redeemable preferred stocks, by sector:
 
 
 
 
 
 
 
 
 
 
 
 
Financial
 
—

 
—

 
—

 
—

 
—

 
—

Utilities
 
5,855

 
(220
)
 
—

 
—

 
5,855

 
(220
)
Total redeemable preferred stocks
 
5,855

 
(220
)
 
—

 
—

 
5,855

 
(220
)
Total investment grade securities
 
862,144

 
(19,643
)
 
275,511

 
(14,778
)
 
1,137,655

 
(34,421
)
Below investment grade securities:
 
 
 
 
 
 
 
 
 
 
 
 
Bonds:
 
 
 
 
 
 
 
 
 
 
 
 
States, municipalities and political subdivisions
 
—

 
—

 
—

 
—

 
—

 
—

Corporates, by sector:
 


 


 


 


 
 
 
 
Financial
 
—

 
—

 
85,338

 
(20,417
)
 
85,338

 
(20,417
)
Energy
 
20,173

 
(185
)
 
81,387

 
(25,686
)
 
101,560

 
(25,871
)
Other corporate sectors
 
—

 
—

 
56,134

 
(6,036
)
 
56,134

 
(6,036
)
Total corporates
 
20,173

 
(185
)
 
222,859

 
(52,139
)
 
243,032

 
(52,324
)
Collateralized debt obligations
 
—

 
—

 
9,697

 
(10,303
)
 
9,697

 
(10,303
)
Redeemable preferred stocks, by sector:
 
 
 
 
 
 
 
 
 
 
 
 
Financial
 
—

 
—

 
21,269

 
(5,849
)
 
21,269

 
(5,849
)
Total redeemable preferred stocks
 
—

 
—

 
21,269

 
(5,849
)
 
21,269

 
(5,849
)
Total below investment grade securities
 
20,173

 
(185
)
 
253,825

 
(68,291
)
 
273,998

 
(68,476
)
Total fixed maturities
 
$
882,317

 
$
(19,828
)
 
$
529,336

 
$
(83,069
)
 
$
1,411,653

 
$
(102,897
)