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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2014
Summary of Significant Accounting Policies [Abstract]  
Deferred policy acquisition costs asset by segment
Deferred Policy Acquisition Costs
 
The Company’s deferred policy acquisition costs (“DAC”) asset by segment was as follows:
 
 
 
December 31,
 
 
 
 
2014
               
               
 
2013
 
 
 
 
 
 
 
 
Annuity
 
$
143,522
 
 
$
170,749
 
Life
 
 
44,400
 
 
 
48,558
 
Property and casualty
 
 
27,160
 
 
 
26,048
 
Total
 
$
215,082
 
 
$
245,355
 
Adjustment to amortization expenses
The Company recorded the following adjustments to amortization expense as a result of evaluating actual experience and prospective assumptions, the impact of unlocking:
 
 
 
Year Ended December 31,
 
 
 
2014
               
               
2013
               
               
2012
 
Increase (decrease) to amortization:
 
 
 
 
 
 
 
 
 
 
 
 
Annuity
 
$
1,224
 
 
$
(3,700
)
 
$
(3,836
)
Life
 
 
(131
)
 
 
126
 
 
 
751
 
Total
 
$
1,093
 
 
$
(3,574
)
 
$
(3,085
)
Allocation of goodwill by reporting unit
The allocation of goodwill by reporting unit is as follows:
 
Annuity
 
$
28,025
 
Life
 
 
9,911
 
Property and casualty
 
 
9,460
 
Total
 
$
47,396
 
Property and Equipment
The following amounts are included in Other Assets in the Consolidated Balance Sheets:
 
 
 
December 31,
 
 
 
 
2014
                  
                  
 
2013
 
 
 
 
 
 
 
 
Property and equipment
 
$
108,056
 
 
$
108,394
 
Less: accumulated depreciation
 
 
77,027
 
 
 
73,459
 
Total
 
$
31.029
 
 
$
34,935
 
Summary of guaranteed minimum death benefit
The Company has a relatively low exposure to GMDB risk as shown below.
 
 
 
December 31,
 
 
 
 
2014
                  
                  
 
2013
 
 
 
 
 
 
 
 
GMDB reserve
 
$
278
 
 
$
209
 
Aggregate in-the-money death benefits under the GMDB provision
 
 
29,866
 
 
 
30,422
 
Variable annuity contract value distribution based on GMDB feature:
 
 
 
 
 
 
 
 
No guarantee
 
 
31
%
 
 
30
%
Return of premium guarantee
 
 
63
%
 
 
64
%
Guarantee of premium roll-up at an annual rate of 3% or 5%
 
 
6
%
 
 
6
%
Total
 
 
100
%
 
 
100
%
Stock options fair value pricing model weighted-average assumptions
The fair value of options granted was estimated on the respective dates of grant using the Black-Scholes option pricing model with the weighted-average assumptions shown in the following table.
 
 
 
 
Year Ended December 31,
 
 
 
 
2014
          
          
 
2013
          
          
 
2012
 
 
 
 
 
 
 
 
 
 
 
Number of options granted
 
 
175,632
 
 
 
245,424
 
 
 
296,188
 
Weighted average grant date fair value of options granted
 
$
9.01
 
 
$
8.25
 
 
$
6.02
 
Weighted average assumptions:
 
 
 
 
 
 
 
 
 
 
 
 
Risk-free interest rate
 
 
1.9
%
 
 
1.0
%
 
 
1.0
%
Expected dividend yield
 
 
2.5
%
 
 
2.7
%
 
 
2.2
%
Expected life, in years
 
 
5.7
 
 
 
5.8
 
 
 
5.8
 
Expected volatility (based on historical volatility)
 
 
40.3
%
 
 
54.5
%
 
 
45.1
%
Computations of net income per share on both basic and diluted bases, including reconciliations of the numerators and denominators
The computations of net income per share on both basic and diluted bases, including reconciliations of the numerators and denominators, were as follows:
 
 
 
 
Year Ended December 31,
 
 
 
 
2014
         
         
 
2013
         
         
 
2012
 
Basic:
 
 
 
 
 
 
 
 
 
 
 
 
Net income for the period
 
$
104,243
 
 
$
110,893
 
 
$
103,866
 
Weighted average number of common shares during the period (in thousands)
 
 
41,646
 
 
 
40,377
 
 
 
39,514
 
Net income per share - basic
 
$
2.50
 
 
$
2.75
 
 
$
2.63
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
 
 
 
 
 
Net income for the period
 
$
104,243
 
 
$
110,893
 
 
$
103,866
 
Weighted average number of common shares during the period (in thousands)
 
 
41,646
 
 
 
40,377
 
 
 
39,514
 
Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
Stock options
 
 
137
 
 
 
211
 
 
 
222
 
Common stock units related to deferred compensation for Directors
 
 
-
 
 
 
-
 
 
 
112
 
Common stock units related to deferred compensation for employees
 
 
70
 
 
 
112
 
 
 
116
 
Restricted common stock units related to incentive compensation
 
 
378
 
 
 
933
 
 
 
1,424
 
Total common and common equivalent shares adjusted to calculate diluted earnings per share (in thousands)
 
 
42,231
 
 
 
41,633
 
 
 
41,388
 
Net income per share - diluted
 
$
2.47
 
 
$
2.66
 
 
$
2.51
 
Components of comprehensive income
The components of comprehensive income (loss) were as follows:
 
 
 
 
Year Ended December 31,
 
 
 
 
2014
        
        
 
2013
        
        
 
2012
 
 
 
 
 
 
 
 
 
 
 
Net income
 
$
104,243
 
 
$
110,893
 
 
$
103,866
 
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
Change in net unrealized gains and losses on fixed maturities and equity securities
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized holding gains and losses on fixed maturities and equity securities arising during the period
 
 
264,136
 
 
 
(363,350
)
 
 
204,460
 
Less: reclassification adjustment for net gains included in income before income tax
 
 
10,943
 
 
 
22,245
 
 
 
27,298
 
Total, before tax
 
 
253,193
 
 
 
(385,595
)
 
 
177,162
 
Income tax expense (benefit)
 
 
89,629
 
 
 
(137,185
)
 
 
62,984
 
Total, net of tax
 
 
163,564
 
 
 
(248,410
)
 
 
114,178
 
Change in net funded status of pension and other postretirement benefit obligations
 
 
 
 
 
 
 
 
 
 
 
 
Before tax
 
 
(1,810
)
 
 
5,645
 
 
 
1,276
 
Income tax expense (benefit)
 
 
(633
)
 
 
2,110
 
 
 
345
 
Total, net of tax
 
 
(1,177
)
 
 
3,535
 
 
 
931
 
Total comprehensive income (loss)
 
$
266,630
 
 
$
(133,982
)
 
$
218,975
 
Accumulated Other Comprehensive Income (Loss)
Reflecting accounting guidance adopted prospectively effective January 1, 2013, the following table reconciles the components of accumulated other comprehensive income (loss) for the periods indicated.
 
 
Unrealized
 
 
 
 
 
 
 
 
 
Gains and
 
 
 
 
 
 
 
 
 
Losses on
 
 
 
 
 
 
 
 
 
Fixed Maturities
 
 
 
 
 
 
 
 
 
and Equity
 
Defined
 
 
 
 
 
Securities (1)(2)
 
Benefit Plans (1)
 
Total (1)
 
 
 
 
 
 
 
     
 
 
 
 
Beginning balance, January 1, 2014
 
$
133,990
     
 
 
$
(11,776
)
 
 
$
122,214
     
Other comprehensive income (loss) before reclassifications
 
 
170,677
 
 
 
 
(1,177
)
 
 
 
169,500
 
Amounts reclassified from accumulated other comprehensive income
 
 
(7,113
)
 
 
 
-
 
 
 
 
(7,113
)
Net current period other comprehensive income (loss)
 
 
163,564
 
 
 
 
(1,177
)
 
 
 
162,387
 
Ending balance, December 31, 2014
 
$
297,554
 
 
 
$
(12,953
)
 
 
$
284,601
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1, 2013
 
$
382,400
 
 
 
$
(15,311
)
 
 
$
367,089
 
Other comprehensive income (loss) before reclassifications
 
 
(233,951
)
 
 
 
3,535
 
 
 
 
(230,416
)
Amounts reclassified from accumulated other comprehensive income
 
 
(14,459
)
 
 
 
-
 
 
 
 
(14,459
)
Net current period other comprehensive income (loss)
 
 
(248,410
)
 
 
 
3,535
 
 
 
 
(244,875
)
Ending balance, December 31, 2013
 
$
133,990
 
 
 
$
(11,776
)
 
 
$
122,214
 
 
(1)
All amounts are net of tax.
(2)
The pretax amounts reclassified from accumulated other comprehensive income, $10,943 and $22,245, are included in net realized investment gains and losses and the related tax expenses, $3,830 and $7,786, are included in income tax expense in the Consolidated Statements of Operations for the years ended December 31, 2014 and 2013, respectively.