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Investments (Tables)
 12 Months Ended
Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Investment Income
The major components of net investment income are as follows:

 
Years Ended December 31,
 
2014
 
2013
 
2012
 
(In thousands)
 
 
 
 
 
 
Gross investment income:
 
 
 
 
 
Debt securities
$
410,809

 
410,790

 
408,204

Mortgage loans
9,847

 
9,256

 
11,879

Policy loans
4,252

 
4,503

 
5,079

Derivative gains (losses)
68,616

 
225,899

 
27,147

Money market investments
401

 
252

 
936

Other investment income
12,591

 
10,759

 
7,965

 
 
 
 
 
 
Total investment income
506,516

 
661,459

 
461,210

Investment expenses
1,086

 
1,027

 
1,162

 
 
 
 
 
 
Net investment income
$
505,430

 
660,432

 
460,048
Mortgage Loans by Geographic Location
The diversification of the portfolio by geographic region, property type, and loan-to-value ratio was as follows:

 
December 31, 2014
 
December 31, 2013
 
Amount
 
%
 
Amount
 
%
 
(In thousands)
 
 
 
(In thousands)
 
 
Mortgage Loans by Geographic Region:
 
 
 
 
 
 
 
West South Central
$
97,918

 
65.2

 
$
79,702

 
59.7

East South Central
14,137

 
9.4

 
10,098

 
7.6

New England
12,155

 
8.1

 
17,400

 
13.0

East North Central
10,714

 
7.1

 
10,607

 
8.0

Pacific
10,282

 
6.9

 
10,364

 
7.8

Mountain
3,050

 
2.0

 
3,239

 
2.4

Middle Atlantic
1,897

 
1.3

 
2,005

 
1.5

Gross balance
150,153

 
100.0

 
133,415

 
100.0

 
 
 
 
 
 
 
 
Allowance for possible losses
(650
)
 
(0.4
)
 
(650
)
 
(0.5
)
 
 
 
 
 
 
 
 
Totals
$
149,503

 
99.6

 
$
132,765

 
99.5
Schedule of Mortgage Loans by Property Type
 
December 31, 2014
 
December 31, 2013
 
Amount
 
%
 
Amount
 
%
 
(In thousands)
 
 
 
(In thousands)
 
 
Mortgage Loans by Property Type:
 
 
 
 
 
 
 
Retail
$
130,544

 
86.9

 
$
103,487

 
77.6

Apartments
7,333

 
4.9

 
15,275

 
11.4

Land/Lots
3,333

 
2.2

 
3,155

 
2.4

Hotel/Motel
1,600

 
1.1

 
3,742

 
2.8

Office
893

 
0.6

 
1,313

 
1.0

All other
6,450

 
4.3

 
6,443

 
4.8

Gross balance
150,153

 
100.0

 
133,415

 
100.0

 
 
 
 
 
 
 
 
Allowance for possible losses
(650
)
 
(0.4
)
 
(650
)
 
(0.5
)
 
 
 
 
 
 
 
 
Totals
$
149,503

 
99.6

 
$
132,765

 
99.5
Schedule of Mortgage Loans by Loan-to-Value Ratio
 
December 31, 2014
 
December 31, 2013
 
Amount
 
%
 
Amount
 
%
 
(In thousands)
 
 
 
(In thousands)
 
 
Mortgage Loans by Loan-to-Value Ratio (1):
 
 
 
 
 
 
 
Less than 50%
$
52,564

 
35.0

 
$
57,445

 
43.0

50% to 60%
50,553

 
33.7

 
23,339

 
17.5

60% to 70%
14,567

 
9.7

 
20,120

 
15.1

70% to 80%
12,656

 
8.4

 
9,723

 
7.3

80% to 90%
5,399

 
3.6

 
—

 
—

Greater than 90%
14,414

 
9.6

 
22,788

 
17.1

Gross balance
150,153

 
100.0

 
133,415

 
100.0

 
 
 
 
 
 
 
 
Allowance for possible losses
(650
)
 
(0.4
)
 
(650
)
 
(0.5
)
 
 
 
 
 
 
 
 
Totals
$
149,503

 
99.6

 
$
132,765

 
99.5


(1)  Loan-to-Value Ratio using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement.
Schedule of Allowance for Mortgage Loans
The following table represents the mortgage loan allowance for the years ended December 31, 2014 and 2013:

 
2014
 
2013
 
(In thousands)
 
 
 
 
Balance, beginning of period
$
650

 
650

Provision
—

 
—

Releases
—

 
—

 
 
 
 
Balance, end of period
$
650

 
650
Investments Classified by Contractual Maturity Date
The contractual maturities of mortgage loan principal balances at December 31, 2014 and 2013 were as follows:

 
December 31, 2014
 
December 31, 2013
 
Amount
 
%
 
Amount
 
%
 
(In thousands)
 
 
 
(In thousands)
 
 
Principal Balance by Contractual Maturity:
 
 
 
 
 
 
 
Due in one year or less
$
16,390

 
10.9
 
$
10,491

 
7.8
Due after one year through five years
83,965

 
55.7
 
51,304

 
38.3
Due after five years through ten years
30,591

 
20.3
 
51,839

 
38.7
Due after ten years through fifteen years
—

 
—
 
—

 
—
Due after fifteen years
19,813

 
13.1
 
20,300

 
15.2
 
 
 
 
 
 
 
 
Totals
$
150,759

 
100.0
 
$
133,934

 
100.0
Schedule of Held-to-Maturity Securities
The table below presents amortized costs and fair values of securities held to maturity at December 31, 2013.

 
Securities Held to Maturity
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
 
(In thousands)
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
U.S. agencies
$
23,088

 
1,700

 
—

 
24,788

U.S. Treasury
1,913

 
434

 
—

 
2,347

States and political subdivisions
423,286

 
13,433

 
(10,944
)
 
425,775

Foreign governments
9,997

 
159

 
—

 
10,156

Public utilities
864,324

 
53,222

 
(9,687
)
 
907,859

Corporate
3,463,521

 
153,442

 
(81,760
)
 
3,535,203

Mortgage-backed
1,696,887

 
54,035

 
(33,376
)
 
1,717,546

Home equity
20,179

 
4,738

 
(32
)
 
24,885

Manufactured housing
7,125

 
460

 
—

 
7,585

 
 
 
 
 
 
 
 
Totals
$
6,510,320

 
281,623

 
(135,799
)
 
6,656,144

The table below presents amortized costs and fair values of securities held to maturity at December 31, 2014.

 
Securities Held to Maturity
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
 
(In thousands)
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
U.S. agencies
$
10,061

 
705

 
—

 
10,766

U.S. Treasury
1,920

 
409

 
—

 
2,329

States and political subdivisions
432,186

 
31,417

 
(336
)
 
463,267

Public utilities
978,847

 
67,836

 
(757
)
 
1,045,926

Corporate
3,754,222

 
183,650

 
(18,591
)
 
3,919,281

Mortgage-backed
1,640,582

 
68,726

 
(4,164
)
 
1,705,144

Home equity
18,886

 
4,734

 
(57
)
 
23,563

Manufactured housing
4,839

 
328

 
—

 
5,167

 
 
 
 
 
 
 
 
Totals
$
6,841,543

 
357,805

 
(23,905
)
 
7,175,443
Schedule of Available-for-Sale Securities
The table below presents amortized costs and fair values of securities available for sale at December 31, 2013.

 
Securities Available for Sale
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
 
(In thousands)
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
States and political subdivisions
$
594

 
—

 
(110
)
 
484

Foreign governments
9,931

 
—

 
(156
)
 
9,775

Public utilities
233,788

 
15,014

 
(1,397
)
 
247,405

Corporate
2,195,124

 
124,519

 
(30,732
)
 
2,288,911

Mortgage-backed
68,799

 
5,040

 
—

 
73,839

Home equity
12,079

 
245

 
(7
)
 
12,317

Manufactured housing
3,803

 
132

 
—

 
3,935

 
2,524,118

 
144,950

 
(32,402
)
 
2,636,666

 
 
 
 
 
 
 
 
Equity public
11,146

 
4,489

 
(757
)
 
14,878

 
 
 
 
 
 
 
 
Totals
$
2,535,264

 
149,439

 
(33,159
)
 
2,651,544

The table below presents amortized costs and fair values of securities available for sale at December 31, 2014.

 
Securities Available for Sale
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
 
(In thousands)
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
States and political subdivisions
$
589

 
—

 
(36
)
 
553

Foreign governments
9,939

 
386

 
—

 
10,325

Public utilities
169,179

 
10,163

 
(126
)
 
179,216

Corporate
2,334,700

 
128,280

 
(8,961
)
 
2,454,019

Mortgage-backed
48,674

 
4,116

 
—

 
52,790

Home equity
11,702

 
225

 
(9
)
 
11,918

Manufactured housing
2,492

 
64

 
—

 
2,556

 
2,577,275

 
143,234

 
(9,132
)
 
2,711,377

 
 
 
 
 
 
 
 
Equity public
12,799

 
4,849

 
(345
)
 
17,303

 
 
 
 
 
 
 
 
Totals
$
2,590,074

 
148,083

 
(9,477
)
 
2,728,680
Schedule of Gross Unrealized Losses and Fair Values of Held-to-Maturity Investments, Continuous Unrealized Loss Position
The following table shows the gross unrealized losses and fair values of the Company's held to maturity investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2014.

 
Held to Maturity
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
State and political subdivisions
$
—

 
—

 
23,076

 
(336
)
 
23,076

 
(336
)
Public utilities
7,078

 
(13
)
 
48,198

 
(744
)
 
55,276

 
(757
)
Corporate
156,839

 
(2,997
)
 
698,316

 
(15,594
)
 
855,155

 
(18,591
)
Mortgage-backed
17,698

 
(240
)
 
181,694

 
(3,924
)
 
199,392

 
(4,164
)
Home equity
2,206

 
(57
)
 
—

 
—

 
2,206

 
(57
)
 
 
 
 
 
 
 
 
 
 
 
 
Total temporarily impaired securities
$
183,821

 
(3,307
)
 
951,284

 
(20,598
)
 
1,135,105

 
(23,905
)
The following table shows the gross unrealized losses and fair values of the Company's held to maturity investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2013.

 
Held to Maturity
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
State and political subdivisions
$
128,711

 
(9,249
)
 
8,080

 
(1,695
)
 
136,791

 
(10,944
)
Public utilities
260,982

 
(8,998
)
 
7,821

 
(689
)
 
268,803

 
(9,687
)
Corporate
1,335,088

 
(71,330
)
 
117,179

 
(10,430
)
 
1,452,267

 
(81,760
)
Mortgage-backed
581,373

 
(32,043
)
 
13,861

 
(1,333
)
 
595,234

 
(33,376
)
Home equity
—

 
—

 
2,617

 
(32
)
 
2,617

 
(32
)
 
 
 
 
 
 
 
 
 
 
 
 
Total temporarily impaired securities
$
2,306,154

 
(121,620
)
 
149,558

 
(14,179
)
 
2,455,712

 
(135,799
)
Schedule of Gross Unrealized Losses and Fair Values of Available-for-Sale Investments, Continuous Unrealized Loss Position
The following table shows the gross unrealized losses and fair values of the Company's available for sale investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2014.

 
Available For Sale
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
State and political subdivisions
$
—

 
—

 
553

 
(36
)
 
553

 
(36
)
Public utilities
—

 
—

 
14,827

 
(126
)
 
14,827

 
(126
)
Corporate
100,373

 
(2,990
)
 
187,699

 
(5,971
)
 
288,072

 
(8,961
)
Home equity
—

 
—

 
4,826

 
(9
)
 
4,826

 
(9
)
 
100,373

 
(2,990
)
 
207,905

 
(6,142
)
 
308,278

 
(9,132
)
 
 
 
 
 
 
 
 
 
 
 
 
Equity public
305

 
(52
)
 
3,801

 
(293
)
 
4,106

 
(345
)
 
 
 
 
 
 
 
 
 
 
 
 
Total temporarily impaired securities
$
100,678

 
(3,042
)
 
211,706

 
(6,435
)
 
312,384

 
(9,477
)
The following table shows the gross unrealized losses and fair values of the Company's available for sale investments by investment category, and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2013.

 
Available For Sale
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
State and political subdivisions
$
—

 
—

 
484

 
(110
)
 
484

 
(110
)
Foreign governments
9,775

 
(156
)
 
—

 
—

 
9,775

 
(156
)
Public utilities
20,090

 
(1,343
)
 
962

 
(54
)
 
21,052

 
(1,397
)
Corporate
532,310

 
(26,376
)
 
46,187

 
(4,356
)
 
578,497

 
(30,732
)
Mortgage-backed
—

 
—

 
—

 
—

 
—

 
—

Home equity
4,833

 
(7
)
 
—

 
—

 
4,833

 
(7
)
 
567,008

 
(27,882
)
 
47,633

 
(4,520
)
 
614,641

 
(32,402
)
 
 
 
 
 
 
 
 
 
 
 
 
Equity public
3,707

 
(757
)
 
—

 
—

 
3,707

 
(757
)
 
 
 
 
 
 
 
 
 
 
 
 
Total temporarily impaired securities
$
570,715

 
(28,639
)
 
47,633

 
(4,520
)
 
618,348

 
(33,159
)
Schedule of Amortized Cost and Fair Value of Investments In Debt Securities
The amortized cost and fair value of investments in debt securities at December 31, 2014, by contractual maturity, are shown below.  Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 
Debt Securities Available for Sale
 
Debt Securities Held to Maturity
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
(In thousands)
 
 
 
 
 
 
 
 
Due in 1 year or less
$
265,789

 
271,938

 
213,353

 
218,435

 
 
 
 
 
 
 
 
Due after 1 year through 5 years
665,953

 
736,333

 
1,181,707

 
1,309,733

 
 
 
 
 
 
 
 
Due after 5 years through 10 years
1,540,081

 
1,592,133

 
3,448,906

 
3,562,392

 
 
 
 
 
 
 
 
Due after 10 years
56,778

 
58,183

 
356,995

 
379,739

 
2,528,601

 
2,658,587

 
5,200,961

 
5,470,299

 
 
 
 
 
 
 
 
Mortgage and asset-backed securities
48,674

 
52,790

 
1,640,582

 
1,705,144

 
 
 
 
 
 
 
 
Total
$
2,577,275

 
2,711,377

 
6,841,543

 
7,175,443
Realized Investment Gains (Losses), Excluding Impairment Losses
 The table below details the nature of realized gains and losses, excluding impairments, during the year.

 
Years Ended December 31,
 
2014
 
2013
 
2012
 
(In thousands)
 
 
 
 
 
 
Available for sale debt securities:
 
 
 
 
 
Realized gains on disposal
$
7,795

 
4,418

 
7,115

Realized losses on disposal
(22
)
 
(6
)
 
—

Held to maturity debt securities:
 
 
 
 
 

Realized gains on redemption
3,453

 
3,845

 
6,065

Realized losses on redemption
(17
)
 
(72
)
 
(679
)
Equity securities realized gains
69

 
511

 
193

Real estate
955

 
262

 
2,485

Mortgage loans
—

 
—

 
(638
)
Other
(478
)
 
—

 
—

 
 
 
 
 
 
Totals
$
11,755

 
8,958

 
14,541
Net Impairment Losses Recognized in Earnings
The table below presents net impairment losses recognized in earnings for the periods indicated.

 
December 31,
 
2014
 
2013
 
2012
 
(In thousands)
 
 
 
 
 
 
Total other-than-temporary impairment recoveries (losses) on debt securities
$
125

 
909

 
1,121

Portion recognized in comprehensive income
(132
)
 
(1,151
)
 
(2,364
)
 
 
 
 
 
 
Net impairment losses on debt securities recognized in earnings
(7
)
 
(242
)
 
(1,243
)
Equity securities impairments
(143
)
 
(63
)
 
(98
)
 
 
 
 
 
 
Totals
$
(150
)
 
(305
)
 
(1,341
)
The table below presents a roll forward of credit losses on securities for which the Company also recorded non-credit other-than-temporary impairments in other comprehensive loss.

 
Year Ended
 
Year Ended
 
December 31, 2014
 
December 31, 2013
 
(In thousands)
 
 
 
 
Beginning balance, cumulative credit losses related to other-than-temporary impairments
$
2,472

 
2,247

Reductions for securities sold during current period
—

 
(17
)
Additions for OTTI where credit losses have been previously recognized
7

 
242

 
 
 
 
Ending balance, cumulative credit losses related to other-than-temporary impairments
$
2,479

 
2,472
Unrealized Gain (Loss) on Investments
Net unrealized gains (losses) on investment securities included in stockholders' equity at December 31, 2014 and 2013, are as follows:

 
December 31,
 
2014
 
2013
 
(In thousands)
 
 
 
 
Gross unrealized gains
$
157,304

 
159,080

Gross unrealized losses
(12,926
)
 
(37,263
)
Adjustments for:
 
 
 

Deferred policy acquisition costs and sales inducements
(62,856
)
 
(51,929
)
Deferred Federal income tax expense
(28,556
)
 
(24,484
)
 
52,966

 
45,404

 
 
 
 
Net unrealized gains related to securities transferred to held to maturity
—

 
—

 
 
 
 
Net unrealized gains on investment securities
$
52,966

 
45,404