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Investments (Tables)
 3 Months Ended
Mar. 31, 2015
Investments [Abstract]  
Fixed Maturities and Equity Securities, Available-for-sale Securities
     March 31, 2015
                   
               Other-than-
       Gross Gross   temporary
     Amortized Unrealized Unrealized Fair Impairments
     Cost Gains Losses Value in AOCI (3)
                   
     (in thousands)
Fixed maturities, available-for-sale  
U.S. Treasury securities and obligations of U.S.                
 government authorities and agencies $87,480 $10,175 $ - $97,655 $ -
Obligations of U.S. states and their political               
 subdivisions  375,937  20,896  270  396,563   -
Foreign government bonds  53,808  4,904   124  58,588   -
Public utilities  713,079  80,872  3,135  790,816   -
Redeemable preferred stock  5,058  1,434  145  6,347   -
All other corporate securities  3,781,661  267,466  27,739  4,021,388  (246)
Asset-backed securities (1)  467,024  8,609  695  474,938  (3,478)
Commercial mortgage-backed securities  458,494  21,899  207  480,186   -
Residential mortgage-backed securities (2)  123,263  11,254  25  134,492  (800)
Total fixed maturities, available-for-sale $6,065,804 $427,509 $32,340 $6,460,973 $(4,524)
                   
Equity securities, available-for-sale               
Common Stocks:               
 Public utilities $66 $17 $ - $83   
 Industrial, miscellaneous & other  4  142   -  146   
 Mutual funds  33,480  1,116  595  34,001   
Non-redeemable preferred stocks  340  274   -  614   
Total equity securities, available-for-sale $33,890 $1,549 $595 $34,844   

_____________

  • Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types.
  • Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
  • Represents the amount of other-than-temporary impairment losses in Accumulated Other Comprehensive Income (“AOCI”), which were not included in earnings. Amount excludes $10 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

 

     December 31, 2014
                   
               Other-than-
        Gross  Gross   temporary
     Amortized  Unrealized  Unrealized Fair Impairments
     Cost  Gains  Losses Value in AOCI (3)
                   
     (in thousands)
Fixed maturities, available-for-sale  
U.S. Treasury securities and obligations of U.S.                
 government authorities and agencies $83,372 $8,711 $1 $92,082 $ -
Obligations of U.S. states and their political               
 subdivisions  310,518  15,323  187  325,654   -
Foreign government bonds  35,228  3,284  14  38,498   -
Public utilities  683,652  62,060  3,288  742,424   -
Redeemable preferred stock  3,185  763  137  3,811   -
All other corporate securities  3,743,804  227,939  20,820  3,950,923  (247)
Asset-backed securities (1)  395,180  8,281  1,210  402,251  (3,531)
Commercial mortgage-backed securities  482,769  17,978  1,868  498,879   -
Residential mortgage-backed securities (2)  129,165  10,902  25  140,042  (836)
Total fixed maturities, available-for-sale $5,866,873 $355,241 $27,550 $6,194,564 $(4,614)
                   
Equity securities, available-for-sale               
Common Stocks:               
 Public utilities $ 66 $ 23 $ - $89   
 Industrial, miscellaneous & other  5  173   -  178   
 Mutual funds  28,470  468  295  28,643   
Non-redeemable preferred stocks  340  250   -  590   
Total equity securities, available-for-sale $28,881 $914 $295 $29,500   

_____________

  • Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types.
  • Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
  • Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $10 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

 
Investments Classified by Contractual Maturity Date
     Available-for-Sale
     Amortized Fair
     Cost Value
          
     (in thousands)
Due in one year or less $ 362,176 $ 371,147
Due after one year through five years   1,115,699   1,192,099
Due after five years through ten years   1,185,249   1,232,056
Due after ten years   2,353,899   2,576,055
Asset-backed securities   467,024   474,938
Commercial mortgage-backed securities   458,494   480,186
Residential mortgage-backed securities   123,263   134,492
  Total $ 6,065,804 $ 6,460,973
Sources of Fixed Maturity Proceeds, Related Investment Gains (Losses), and Losses on Impairments of Fixed Maturities and Equity Securities
     Three Months Ended   
     March 31,  
            
     2015 2014  
            
  (in thousands)
Fixed maturities, available-for-sale        
  Proceeds from sales $ 88,320 $39,886  
  Proceeds from maturities/repayments   151,823  182,019  
  Gross investment gains from sales, prepayments and maturities  2,517  1,679  
  Gross investment losses from sales and maturities  (391)  (407)  
Equity securities, available-for-sale        
  Proceeds from sales $ - $ -  
  Proceeds from maturities/repayments   -   -  
  Gross investment gains from sales   -   -  
  Gross investment losses from sales   -   -  
Fixed maturity and equity security impairments        
  Net writedowns for other-than-temporary impairment losses         
   on fixed maturities recognized in earnings (1) $ (12) $ -  
  Writedowns for impairments on equity securities   -   -  

_____________

  • Excludes the portion of other-than-temporary impairments recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment.

 
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI
     
    Three Months Ended March 31,
         
    2015 2014
         
    (in thousands)
         
         
Balance, beginning of period $8,729 $14,660
Credit loss impairments previously recognized on securities which matured, paid       
 down, prepaid or were sold during the period   (64)  (4,469)
Additional credit loss impairments recognized in the current period on securities      
 previously impaired  12   -
Increases due to the passage of time on previously recorded credit losses   37  101
Accretion of credit loss impairments previously recognized due to an increase in      
 cash flows expected to be collected   (86)  (120)
Balance, end of period $8,628 $10,172
Trading Account Assets Disclosure
     March 31, 2015 December 31, 2014
     Amortized Fair Amortized Fair
     Cost Value Cost Value
                
  (in thousands)
                
             
Fixed maturities $43,509 $42,015 $43,490 $44,121
Equity securities  14,761  18,369   3,447   5,540
  Total trading account assets  $58,270 $60,384 $46,937 $49,661
Commercial Mortgage and Other Loans
     March 31, 2015   December 31, 2014 
     Amount % of  Amount % of 
     (in thousands) Total  (in thousands) Total 
                  
Commercial and agricultural mortgage loans by property type:              
Retail  $452,984  26.3% $439,679  26.2%
Apartments/Multi-Family   418,703  24.3   401,568  23.9 
Industrial  291,662  16.9   286,104  17.1 
Office  254,707  14.8   244,072  14.6 
Other  98,773   5.8   99,083   5.9 
Hospitality  91,560   5.3   92,126   5.5 
                  
  Total commercial mortgage loans  1,608,389   93.4   1,562,632   93.2 
Agricultural property loans  113,786   6.6   114,665   6.8 
  Total commercial and agricultural mortgage loans by property               
   type  1,722,175  100.0%  1,677,297  100.0%
Valuation allowance  (4,003)      (4,154)    
                  
  Total net commercial and agricultural mortgage loans by property              
   type  1,718,172      1,673,143    
                  
Other Loans              
Uncollateralized loans  8,410      8,410    
Valuation allowance   -       -    
                  
  Total net other loans  8,410       8,410    
                  
  Total commercial mortgage and other loans $1,726,582     $1,681,553    
Allowance for Losses
     March 31, 2015 December 31, 2014
          
  (in thousands)
Allowance for credit losses, beginning of year $4,154 $8,904
Addition to / (release of) allowance for losses  (151)  (1,832)
Charge-offs, net of recoveries   -   (2,918)
Total ending balance (1) $4,003 $4,154

_____________

  • Agricultural loans represent $0.1 million of the ending allowance at both March 31, 2015 and December 31, 2014.

 
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans
     March 31, 2015 December 31, 2014
  (in thousands)
Allowance for Credit Losses:      
Individually evaluated for impairment (1) $ 896 $ 940
Collectively evaluated for impairment (2)   3,107   3,214
Total ending balance $ 4,003 $ 4,154
          
Recorded Investment: (3)      
Gross of reserves: individually evaluated for impairment (1) $ 22,455 $ 15,875
Gross of reserves: collectively evaluated for impairment (2)   1,708,130   1,669,832
Total ending balance, gross of reserves $ 1,730,585 $ 1,685,707

_____________

  • There were no agricultural or uncollateralized loans individually evaluated for impairments at both March 31, 2015 and December 31, 2014.
  • Agricultural loans collectively evaluated for impairment had a recorded investment of $114 million and $115 million at March 31, 2015 and December 31, 2014, respectively, and a related allowance of $0.1 million at both March 31, 2015 and December 31, 2014. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $8 million at both March 31, 2015 and December 31, 2014 and no related allowance for both periods.
  • Recorded investment reflects the balance sheet carrying value gross of related allowance.

 
Net Investment Income
    Three Months Ended
    March 31,
    2015  2014
         
    (in thousands)
Fixed maturities, available-for-sale $63,938 $65,735
Equity securities, available-for-sale  1   -
Trading account assets  512  196
Commercial mortgage and other loans  20,897  19,830
Policy loans  15,115  14,726
Short-term investments and cash equivalents  275  157
Other long-term investments  8,070  2,467
  Gross investment income  108,808  103,111
Less: investment expenses  (5,388)  (4,634)
  Net investment income $103,420 $98,477
Realized Gain (Loss) on Investments
    Three Months Ended
    March 31,
    2015 2014
         
    (in thousands)
Fixed maturities $2,114 $1,272
Equity securities   -   -
Commercial mortgage and other loans  151  127
Joint ventures and limited partnerships  38   -
Derivatives  56,720  84,122
Other  2  10
  Realized investment gains (losses), net $59,025 $85,531
Components of Accumulated Other Comprehensive Income
   Accumulated Other Comprehensive Income (Loss)
    Foreign Currency Translation Adjustment  Net Unrealized Investment Gains (Losses) (1)  Total Accumulated Other Comprehensive Income (Loss)
           
   (in thousands)
Balance, December 31, 2014 $(67) $178,758 $178,691
Change in other comprehensive income         
  before reclassifications   (520)  81,731  81,211
Amounts reclassified from AOCI    -  (2,114)  (2,114)
Income tax benefit (expense)  182  (27,866)  (27,684)
Balance, March 31, 2015 $(405) $230,509 $230,104
           
   Accumulated Other Comprehensive Income (Loss)
    Foreign Currency Translation Adjustment  Net Unrealized Investment Gains (Losses) (1)  Total Accumulated Other Comprehensive Income (Loss)
           
   (in thousands)
Balance, December 31, 2013 $403 $56,243 $56,646
Change in other comprehensive income         
  before reclassifications   (2)  92,374  92,372
Amounts reclassified from AOCI    -  (1,272)  (1,272)
Income tax benefit (expense)  1  (31,886)  (31,885)
Balance, March 31, 2014 $402 $115,459 $115,861

_____________

  • Includes cash flow hedges of $36 million and $12 million as of March 31, 2015 and December 31, 2014, respectively and ($5) million as of both March 31, 2014 and December 31, 2013, respectively.

 
Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications out of Accumulated Other Comprehensive Income (Loss)
        
      Three Months Ended
      March 31, 2015
        
      (in thousands)
Amounts reclassified from AOCI (1)(2):   
Net unrealized investment gains (losses):   
 Cash flow hedges - Currency/Interest rate (3) $ 1,801
 Net unrealized investment gains (losses) on available-for-sale securities (4)   313
  Total net unrealized investment gains (losses)   2,114
        
    Total reclassifications for the period $ 2,114

_____________

  • All amounts are shown before tax.
  • Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.
  • See Note 5 for additional information on cash flow hedges.
  • See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders' account balances.
Net Unrealized Investment Gain (Loss) AOCI Rollforward
     Net Unrealized Gains (Losses) on Investments Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits and Policyholders' Account Balances (1) Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
                   
  (in thousands)
Balance, December 31, 2014 $ 5,333 $ (2,538) $ 1,228 $ (1,440) $ 2,583
Net investment gains (losses) on               
 investments arising during the period   158   -   -   (55)   103
Reclassification adjustment for (gains)               
 losses included in net income    (109)   -   -   37   (72)
Impact of net unrealized investment (gains) losses               
 on deferred policy acquisition costs and other costs   -   11   -   (4)   7
Impact of net unrealized investment (gains)               
 losses on future policy benefits               
 and policyholders' account balances   -   -   (28)   10   (18)
Balance, March 31, 2015 $ 5,382 $ (2,527) $ 1,200 $ (1,452) $ 2,603

_____________

  • Balances are net of reinsurance.

 
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward
     Net Unrealized Gains (Losses) on Investments (1) Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits and Policyholders' Account Balances (2) Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
                   
  (in thousands)
Balance, December 31, 2014 $ 344,577 $ (112,829) $ 39,122 $ (94,695) $ 176,175
Net investment gains (losses) on               
 investments arising during the period   95,022   -   -   (33,258)   61,764
Reclassification adjustment for (gains)               
 losses included in net income   (2,006)   -   -   703   (1,303)
Impact of net unrealized investment (gains) losses               
 on deferred policy acquisition costs and other costs   -   (23,107)   -   8,087   (15,020)
Impact of net unrealized investment (gains)               
 losses on future policy benefits               
 and policyholders' account balances   -   -   9,676   (3,387)   6,289
Balance, March 31, 2015 $ 437,593 $ (135,936) $ 48,798 $ (122,550) $ 227,905

_____________

  • Includes cash flow hedges. See Note 5 for information on cash flow hedges.
  • Balances are net of reinsurance.
Unrealized Gains and (Losses) on Investments
     March 31, December 31,
     2015 2014
          
 (in thousands)
Fixed maturity securities on which an OTTI loss has been recognized $ 5,382 $ 5,333
Fixed maturity securities, available-for-sale - all other   389,787   322,358
Equity securities, available-for-sale   954   619
Derivatives designated as cash flow hedges (1)   36,281   11,585
Other investments   10,571   10,015
Net unrealized gains (losses) on investments $ 442,975 $ 349,910

_____________

  • See Note 5 for more information on cash flow hedges.

 
Duration Of Gross Unrealized Losses On Fixed Maturity Securities Disclosures
    March 31, 2015
    Less than twelve months Twelve months or more Total
                     
    Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses
                     
  (in thousands)
Fixed maturities, available-for-sale  
U.S. Treasury securities and obligations of                  
 U.S. government authorities and agencies $ - $ - $ - $ - $ - $ -
Obligations of U.S. states and their                  
 political subdivisions   36,412   270   -   -  36,412  270
Foreign government bonds   3,275   124   -   -  3,275  124
Public utilities  36,515  2,143  6,300  992  42,815  3,135
All other corporate securities  441,390  24,893  68,998  2,991  510,388  27,884
Asset-backed securities  175,783  344  54,757  351  230,540  695
Commercial mortgage-backed securities  40,720  96  4,434  111  45,154  207
Residential mortgage-backed securities   735   11  3,673  14  4,408  25
  Total $734,830 $27,881 $138,162 $4,459 $872,992 $32,340

    December 31, 2014
    Less than twelve months Twelve months or more Total
                     
    Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses
                     
  (in thousands)
Fixed maturities, available-for-sale  
U.S. Treasury securities and obligations of                  
 U.S. government authorities and agencies $994 $1 $ - $ - $994 $1
Obligations of U.S. states and their                   
 political subdivisions  9,852  125   2,886   62  12,738  187
Foreign government bonds  2,246  14   -   -  2,246  14
Public utilities  30,974  1,618  45,756  1,670  76,730  3,288
All other corporate securities  356,348  13,194  260,985  7,763  617,333  20,957
Asset-backed securities  209,774  737  54,711  473  264,485  1,210
Commercial mortgage-backed securities  15,824  155  87,606  1,713  103,430  1,868
Residential mortgage-backed securities  776  11  3,878  14  4,654  25
  Total $626,788 $15,855 $455,822 $11,695 $1,082,610 $27,550
Duration Of Gross Unrealized Losses On Equity Securities
Equity securities, available-for-sale $ 9,406 $ 595 $ - $ - $ 9,406 $ 595

Equity securities, available-for-sale $14,706 $295 $ - $ - $14,706 $295
Credit Quality Indicators [Text Block]
Total commercial and agricultural mortgage loans         
               
    Debt Service Coverage Ratio - March 31, 2015
    Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total
               
Loan-to-Value Ratio (in thousands)
0%-59.99% $ 1,010,032 $ 14,958 $ 15,757 $ 1,040,747
60%-69.99%   404,088   9,764   19,704   433,556
70%-79.99%   198,461   18,230   -   216,691
Greater than 80%   3,323   22,016   5,842   31,181
  Total commercial and agricultural mortgage loans $ 1,615,904 $ 64,968 $ 41,303 $ 1,722,175

               
    Debt Service Coverage Ratio - December 31, 2014
    Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total
               
Loan-to-Value Ratio (in thousands)
0%-59.99% $ 997,610 $ 24,491 $ 9,393 $ 1,031,494
60%-69.99%   372,958   15,741   13,981   402,680
70%-79.99%   177,956   31,463   3,493   212,912
Greater than 80%   2,991   22,068   5,152   30,211
  Total commercial and agricultural mortgage loans $ 1,551,515 $ 93,763 $ 32,019 $ 1,677,297