Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value of Financial Instruments [Abstract]

Summary of Company's fair value hierarchy measured at recurring basis

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured and carried at fair value on a recurring basis. At December 31, 2014, these Level 3 invested assets comprised approximately 2.3% of the Company’s total investment portfolio fair value.

					Fair Value Measurements at
	Carrying		Fair		Reporting Date Using
	Amount		Value		Level 1		Level 2		Level 3
December 31, 2014
Financial Assets
Investments
Fixed maturities
U.S. Government and federally sponsored agency obligations:
Mortgage-backed securities	$	535,726	$	535,726	$	-	$	535,726	$	-
Other, including
U.S. Treasury securities		538,199		538,199		17,857		520,342		-
Municipal bonds		1,647,822		1,647,822		-		1,634,194		13,628
Foreign government bonds		59,536		59,536		-		59,536		-
Corporate bonds		2,834,749		2,834,749		10,524		2,749,508		74,717
Other mortgage-backed securities		1,277,058		1,277,058		-		1,194,109		82,949
Total fixed maturities		6,893,090		6,893,090		28,381		6,693,415		171,294
Equity securities		110,655		110,655		92,140		18,509		6
Short-term investments		142,039		142,039		142,039		-		-
Other investments		12,458		12,458		-		12,458		-
Totals		7,158,242		7,158,242		262,560		6,724,382		171,300
Separate Account (variable annuity) assets (1)		1,813,557		1,813,557		1,813,557		-		-
Financial Liabilities
Other policyholder funds, embedded derivatives		20,049		20,049		-		-		20,049
December 31, 2013
Financial Assets
Investments
Fixed maturities
U.S. Government and federally sponsored agency obligations:
Mortgage-backed securities	$	569,725	$	569,725	$	-	$	569,725	$	-
Other, including
U.S. Treasury securities		435,574		435,574		17,757		417,817		-
Municipal bonds		1,471,527		1,471,527		-		1,468,833		2,694
Foreign government bonds		54,951		54,951		-		54,951		-
Corporate bonds		2,614,409		2,614,409		10,181		2,543,402		60,826
Other mortgage-backed securities		863,387		863,387		-		817,378		46,009
Total fixed maturities		6,009,573		6,009,573		27,938		5,872,106		109,529
Equity securities		91,858		91,858		74,279		17,573		6
Short-term investments		206,758		206,758		206,354		404		-
Other investments		5,000		5,000		-		5,000		-
Totals		6,313,189		6,313,189		308,571		5,895,083		109,535
Separate Account (variable annuity) assets (1)		1,747,995		1,747,995		1,747,995		-		-
Financial Liabilities
Other policyholder funds, embedded derivatives		-		-		-		-		-

(1) Separate Account (variable annuity) liabilities are set equal to Separate Account (variable annuity) assets.

Table for reconciliations for all Level 3 assets measured at fair value on a recurring basis

The following tables present reconciliations for the periods indicated for all Level 3 assets and liabilities measured at fair value on a recurring basis.

																									Financial
		Financial Assets																							Liabilities(1)
	Municipal Bonds				Corporate Bonds				Other Mortgage- Backed Securities				Total Fixed Maturities				Equity Securities				Total
Beginning balance January 1, 2014		$	2,694			$	60,826			$	46,009			$	109,529			$	6			$	109,535			$	-
Transfers into Level 3 (2)			10,056				20,649				42,108				72,813				-				72,813				-
Transfers out of Level 3 (2)			-				(3,510	)			(519	)			(4,029	)			-				(4,029	)			-
Total gains or losses
Net realized gains (losses) included in net income			-				-				(26	)			(26	)			-				(26	)			1,157
Net unrealized gains (losses) included in other comprehensive income			1,191				3,611				118				4,920				-				4,920				-
Purchases			-				-				-				-				-				-				-
Issuances			-				-				-				-				-				-				19,338
Sales			-				-				-				-				-				-				-
Settlements			-				-				-				-				-				-				-
Paydowns, maturities and distributions			(313	)			(6,859	)			(4,741	)			(11,913	)			-				(11,913	)			(446	)
Ending balance, December 31, 2014		$	13,628			$	74,717			$	82,949			$	171,294			$	6			$	171,300			$	20,049
Beginning balance, January 1, 2013		$	12,275			$	85,722			$	33,172			$	131,169			$	340			$	131,509			$	-
Transfers into Level 3 (2)			9,453				34,258				67,827				111,538				-				111,538				-
Transfers out of Level 3 (2)			(6,347	)			(54,530	)			(30,847	)			(91,724	)			-				(91,724	)			-
Total gains or losses
Net realized gains (losses) included in net income			-				-				-				-				-				-				-
Net unrealized gains (losses) included in other comprehensive income			(481	)			(2,007	)			(328	)			(2,816	)			-				(2,816	)			-
Purchases			-				-				-				-				-				-				-
Issuances			-				-				-				-				-				-				-
Sales			-				-				-				-				(334	)			(334	)			-
Settlements			-				-				-				-				-				-				-
Paydowns, maturities and distributions			(12,206	)			(2,617	)			(23,815	)			(38,638	)			-				(38,638	)			-
Ending balance, December 31, 2013		$	2,694			$	60,826			$	46,009			$	109,529			$	6			$	109,535			$	-

(1) Represents embedded derivatives, all related to the Company’s FIA products, reported in Other Policyholder Funds in the Company’s Consolidated Balance Sheets.

(2) Transfers into and out of Level 3 during the years ended December 31, 2014 and 2013 were attributable to changes in the availability of observable market information for individual fixed maturity securities. The Company’s policy is to recognize transfers into and transfers out of the levels as having occurred at the end of the reporting period in which the transfers were determined.

Carrying value, fair value and fair value hierarchy of financial assets and financial liabilities

The following table presents the carrying value, fair value and fair value hierarchy of these financial assets and financial liabilities.

					Fair Value Measurements at
	Carrying		Fair		Reporting Date Using
	Amount		Value		Level 1		Level 2		Level 3
December 31, 2014
Financial Assets
Investments
Other investments	$	145,409	$	149,792	$	-	$	-	$	149,792
Financial Liabilities
Fixed annuity contract liabilities		3,774,457		3,691,123		-		-		3,691,123
Policyholder account balances on interest-sensitive life contracts		77,415		81,461		-		-		81,461
Other policyholder funds		586,689		586,689		-		500,080		86,609
Short-term debt		38,000		38,000		-		38,000		-
Long-term debt		199,939		209,495		209,495		-		-
Other liabilities, repurchase agreement obligations		-		-		-		-		-
December 31, 2013
Financial Assets
Investments
Other investments	$	140,685	$	144,921	$	-	$	-	$	144,921
Financial Liabilities
Fixed annuity contract liabilities		3,515,865		3,302,333		-		-		3,302,333
Policyholder account balances on interest-sensitive life contracts		78,598		79,678		-		-		79,678
Other policyholder funds		346,292		346,292		-		250,000		96,292
Short-term debt		38,000		38,000		-		38,000		-
Long-term debt		199,874		218,565		218,565		-		-
Other liabilities, repurchase agreement obligations		25,864		25,864		-		25,864		-