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Investments (Tables)
 12 Months Ended
Dec. 31, 2013
Investments [Abstract]  
Fixed Maturities and Equity Securities, Available-for-sale Securities
     December 31, 2013
                   
               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 $6,382 $36 $ 34 $6,384 $ -
Obligations of U.S. states and their political               
 subdivisions  67,225  2,911  1,570  68,566   -
Foreign government bonds  25,437  5,717   -  31,154   -
Public utilities  229,807  17,048  3,190  243,665   -
Redeemable preferred stock   -   -   -   -   -
Corporate securities  2,029,720  158,360  9,103  2,178,977   -
Asset-backed securities (1)  182,888  6,513  1,509  187,892  (1,351)
Commercial mortgage-backed securities  384,764  11,387  5,518  390,633   -
Residential mortgage-backed securities (2)  152,779  5,138  972  156,945  (40)
Total fixed maturities, available-for-sale $3,079,002 $207,110 $21,896 $3,264,216 $(1,391)
                   
Equity securities, available-for-sale               
Common Stocks:               
 Public utilities $192 $ - $ - $192   
 Mutual funds  14  2   -  16   
Total equity securities, available-for-sale $206 $2 $ - $208   

_____________

  • Includes credit-tranched securities collateralized by sub-prime mortgages, 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 $1.7 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, 2012
                   
               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 $4,568 $118 $ - $4,686 $ -
Obligations of U.S. states and their political               
 subdivisions  95,107  7,359  350  102,116   -
Foreign government bonds  45,733  9,796   -  55,529   -
Public utilities  253,566  29,554  569  282,551   -
Redeemable preferred stock  2,565  697   -  3,262   -
Corporate securities  2,622,982  283,117  658  2,905,441   -
Asset-backed securities (1)  179,037  8,772  332  187,477  (3,514)
Commercial mortgage-backed securities  369,187  25,725  10  394,902   -
Residential mortgage-backed securities (2)  254,751  12,735   -  267,486  (48)
Total fixed maturities, available-for-sale $3,827,496 $377,873 $1,919 $4,203,450 $(3,562)
                   
Equity securities, available-for-sale               
Common Stocks:               
 Public utilities $ - $ - $ - $ -   
 Mutual funds (4)  18  4   -  22   
Total equity securities, available-for-sale $18 $4 $ - $22   

_____________

  • Includes credit-tranched securities collateralized by sub-prime mortgages, 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 $4.1 million of net unrealized gains or losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.
  • Prior period has been reclassified to conform to the current period presentation.
Investments Classified by Contractual Maturity Date
     Available-for-Sale
     Amortized Fair
     Cost Value
          
     (in thousands)
Due in one year or less $ 432,502 $ 438,120
Due after one year through five years   864,299   936,644
Due after five years through ten years   642,273   696,655
Due after ten years   419,497   457,327
Asset-backed securities   182,888   187,892
Commercial mortgage-backed securities   384,764   390,633
Residential mortgage-backed securities   152,779   156,945
  Total $ 3,079,002 $ 3,264,216
Sources of Fixed Maturity Proceeds, Related Investment Gains (Losses), and Losses on Impairments of Fixed Maturities and Equity Securities
     2013 2012 2011
             
     (in thousands)
Fixed maturities, available-for-sale  
  Proceeds from sales $ 314,415 $ 504,001 $ 1,121,792
  Proceeds from maturities/repayments   1,175,680   861,512   545,155
  Gross investment gains from sales, prepayments, and maturities   18,619   23,077   75,580
  Gross investment losses from sales and maturities   (9,824)   (134)   (223)
Equity securities, available-for-sale         
  Proceeds from sales $ 14 $ 3,201 $ -
  Gross investment gains from sales   10   703   -
Fixed maturity and equity security impairments         
  Net writedowns for other-than-temporary impairment losses         
   on fixed maturities recognized in earnings (1) $ - $ (258) $ (962)

_____________

  • 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
    Year Ended Year Ended
    December 31, December 31,
    2013 2012
         
     (in thousands)
         
Balance, beginning of period $3,381 $3,542
Credit loss impairments previously recognized on securities which matured, paid       
 down, prepaid or were sold during the period  (1,628)  (275)
Additional credit loss impairments recognized in the current period on securities      
 previously impaired   -   258
Increases due to the passage of time on previously recorded credit losses  114  197
Accretion of credit loss impairments previously recognized due to an increase in       
 cash flows expected to be collected   (68)  (341)
Balance, end of period $1,799 $3,381
         
Trading Account Assets Disclosure
     December 31, 2013 December 31, 2012
     Amortized Fair Amortized Fair
     Cost Value Cost Value
                
  (in thousands)
             
Fixed maturities $ - $ - $1,973 $2,022
Equity securities  5,164  6,677  5,217  5,894
  Total trading account assets $5,164 $6,677 $7,190 $7,916
Commercial Mortgage and Other Loans
     December 31, 2013  December 31, 2012 
     Amount % of  Amount % of 
     (in thousands) Total  (in thousands) Total 
                  
Commercial and agricultural mortgage loans by property type:              
Apartments/Multi-Family  $125,045  31.5% $120,066  28.0%
Industrial  88,009  22.1   114,619  26.7 
Retail   72,325  18.2   71,546  16.7 
Office  40,976  10.3   59,074  13.8 
Other  13,796  3.5   9,206  2.0 
Hospitality  5,133  1.3   4,621  1.1 
                  
  Total commercial mortgage loans  345,284  86.9   379,132  88.3 
Agricultural property loans  52,223  13.1   50,026  11.7 
  Total commercial and agricultural mortgage loans by property              
   type  397,507  100.0%  429,158  100.0%
Valuation allowance  (1,256)      (2,177)    
                  
  Total net commercial and agricultural mortgage loans by property               
   type  396,251      426,981    
                  
Other Loans              
Uncollateralized loans   2,740       -    
                  
  Total other loans   2,740       -    
                  
  Total commercial mortgage and other loans $ 398,991     $426,981    
Allowance for Losses
     December 31, 2013 December 31, 2012 December 31, 2011
             
  (in thousands)
Allowance for losses, beginning of year $2,177 $1,501 $2,980
Addition to / (release of) allowance for losses   (921)   676   (1,479)
Total ending balance (1) $1,256 $2,177 $1,501

_____________

  • Agricultural loans represent $0.1 million of the ending allowance at December 31, 2013 and $0.2 million of the ending allowance at both December 31, 2012 and 2011.

 
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans
     December 31, 2013 December 31, 2012
      
  (in thousands)
Allowance for Credit Losses:      
Ending balance: individually evaluated for impairment (1) $ - $ -
Ending balance: collectively evaluated for impairment (2)  1,256  2,177
Total ending balance $1,256 $2,177
          
Recorded Investment (3):      
Ending balance gross of reserves: individually evaluated for impairment (1) $ - $ -
Ending balance gross of reserves: collectively evaluated for impairment (2)  400,247  429,158
Total ending balance, gross of reserves $400,247 $429,158

_____________

  • There were no loans individually evaluated for impairments at December 31, 2013 and 2012.
  • Agricultural loans collectively evaluated for impairment had a recorded investment of $52 million and $50 million at December 31, 2013 and 2012 respectively, and a related allowance of $0.1 million and $0.2 million, respectively. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $3 million and $0 million at December 31, 2013 and 2012, respectively, and no related allowance for both periods.
  • Recorded investment reflects the balance sheet carrying value gross of related allowance.

 
Schedule Of Other Long Term Investments [Text Block]
  2013 2012
       
  (in thousands)
Joint ventures and limited partnerships $ 60,585 $ 43,925
Derivatives   -   131,736
Total other long-term investments $ 60,585 $ 175,661
Net Investment Income
    2013 2012 2011
            
    (in thousands)
Fixed maturities, available-for-sale $191,043 $246,479 $282,108
Equity securities, available-for-sale   -  7  278
Trading account assets  342  923  2,023
Commercial mortgage and other loans  28,463  28,449  28,044
Policy loans  675  845  902
Short-term investments  323  620  724
Other long-term investments  3,601  8,302  1,016
  Gross investment income  224,447  285,625  315,095
Less: investment expenses  (6,564)  (7,974)  (9,085)
  Net investment income $217,883 $277,651 $306,010
Realized Gain (Loss) on Investments
     2013 2012 2011
             
     (in thousands)
Fixed maturities $8,795 $22,684 $74,395
Equity securities  10  703  1,996
Commercial mortgage and other loans  933  1,043  6,866
Derivatives  (194,055)  (107,663)  (11,366)
Other  (34)  3  (108)
  Realized investment gains (losses), net $(184,351) $(83,230) $71,783
Net Unrealized Investment Gain (Loss) AOCI Rollforward
     Net Unrealized Gains (Losses) on Investments Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses)
                   
     (in thousands)
Balance, December 31, 2010 $ (6,560) $ 2,852 $ - $ 1,313 $ (2,395)
Net investment gains (losses) on investments                
  arising during the period   (1,482)   -   -   519   (963)
Reclassification adjustment for gains (losses)                
 included in net income    6,302   -   -   (2,206)   4,096
Impact of net unrealized investment (losses) gains on               
 deferred policy acquisition costs, deferred sales                
 inducements and valuation of business acquired   -   (2,160)   -   756   (1,404)
Impact of net unrealized investment (gains) losses on               
 future policy benefits   -   -   -   -   -
Balance, December 31, 2011 $ (1,740) $ 692 $ - $ 382 $ (666)
Net investment gains (losses) on investments                
  arising during the period   3,067   -   -   (1,073)   1,994
Reclassification adjustment for gains (losses)                
 included in net income    (782)   -   -   274   (508)
Impact of net unrealized investment (losses) gains on               
 deferred policy acquisition costs, deferred sales                
 inducements and valuation of business acquired   -   (906)   -   317   (589)
Impact of net unrealized investment (gains) losses on               
 future policy benefits   -   -   -   -   -
Balance, December 31, 2012 $545 $(214) $ - $(100) $231
Net investment gains (losses) on investments                
  arising during the period  483   -   -  (168)  315
Reclassification adjustment for gains (losses)                
 included in net income   (705)   -   -  247  (458)
Impact of net unrealized investment (losses) gains on               
 deferred policy acquisition costs, deferred sales                
 inducements and valuation of business acquired   -  98   -  (35)  63
Impact of net unrealized investment (gains) losses on               
 future policy benefits   -   -  (14)   5  (9)
Balance, December 31, 2013 $323 $(116) $ (14) $(51) $142
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward
                Accumulated Other
                Comprehensive
             Deferred  Income (Loss) Related
     Net Unrealized  Deferred Policy  Future Income Tax   To Net Unrealized
     Gains/(Losses) on  Acquisition Costs Policy (Liability) Investment
     Investments (1) and Other Costs Benefits Benefit  Gains (Losses)
                   
  (in thousands)
Balance, December 31, 2010 $ 504,664 $ (206,046) $ - $ (105,352) $ 193,266
Net investment gains (losses) on investments                
 arising during the period   19,706   -   -   (6,897)   12,809
Reclassification adjustment for (losses) gains                
 included in net income   (82,693)   -   -   28,947   (53,746)
Impact of net unrealized investment gains                
 (losses) on deferred policy acquisition                
 costs, deferred sales inducements and                
 valuation of business acquired   -   13,927   -   (4,879)   9,048
Impact of net unrealized investment (gains)               
 losses on future policy benefits   -   -   -   -   -
Balance, December 31, 2011 $ 441,677 $ (192,119) $ - $ (88,181) $ 161,377
Net investment gains (losses) on investments                
 arising during the period   (42,295)   -   -   14,804   (27,491)
Reclassification adjustment for (losses) gains                
 included in net income   (22,605)   -   -   7,912   (14,693)
Impact of net unrealized investment gains                
 (losses) on deferred policy acquisition                
 costs, deferred sales inducements and                
 valuation of business acquired   -   45,030   -   (15,760)   29,270
Impact of net unrealized investment (gains)               
 losses on future policy benefits   -   -   (2,164)   757   (1,407)
Balance, December 31, 2012 $376,777 $(147,089) $(2,164) $(80,468) $147,056
Net investment gains (losses) on investments                
 arising during the period  (183,950)   -   -  64,383  (119,567)
Reclassification adjustment for (losses) gains                
 included in net income  (8,100)   -   -  2,835  (5,265)
Impact of net unrealized investment gains                
 (losses) on deferred policy acquisition                
 costs, deferred sales inducements and                
 valuation of business acquired   -  80,637   -  (28,222)  52,415
Impact of net unrealized investment (gains)               
 losses on future policy benefits   -   -  (6,023)  2,109  (3,914)
Balance, December 31, 2013 $184,727 $(66,452) $(8,187) $(39,363) $70,725

_____________

  • Includes cash flow hedges. See Note 11 for additional discussion of the Company's cash flow hedges.

 
Unrealized Gains and (Losses) on Investments
     2013 2012 2011
             
  (in thousands)
Fixed maturity securities on which an OTTI loss has been recognized $323 $545 $(1,740)
Fixed maturity securities, available-for-sale - all other  184,891  375,409  436,812
Equity securities, available-for-sale  2  4  561
Affiliated notes  3,113  4,386  5,263
Derivatives designated as cash flow hedges (1)  (3,653)  (3,068)  (962)
Other investments  374  46  3
Net Unrealized gains (losses) on investments $185,050 $377,322 $439,937

_____________

  • See Note 11 for more information on cash flow hedges.

 
Duration Of Gross Unrealized Losses On Fixed Maturity Securities Disclosures
    December 31, 2013
    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 $3,347 $34 $ - $ - $3,347 $34
Obligations of U.S. States and their                   
 political subdivisions  5,420  588  6,402  982  11,822  1,570
Corporate securities  351,306  11,923  2,704  370  354,010  12,293
Asset-backed securities  97,575  1,509   -   -  97,575  1,509
Commercial mortgage-backed securities  86,132  5,249  2,941   269  89,073  5,518
Residential mortgage-backed securities  100,150  972   -   -  100,150  972
  Total $643,930 $20,275 $12,047 $1,621 $655,977 $21,896
                     
Equity securities, available-for-sale $ - $ - $ - $ - $ - $ -

    December 31, 2012
    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  7,090  350   -   -  7,090  350
Corporate securities  35,248  897  14,867  330  50,115  1,227
Asset-backed securities  13,817  42  2,994  290  16,811  332
Commercial mortgage-backed securities  3,326  10   -   -  3,326  10
Residential mortgage-backed securities   -   -   -   -   -   -
  Total $59,481 $1,299 $17,861 $620 $77,342 $1,919
                     
Equity securities, available-for-sale $ - $ - $ - $ - $ - $ -
Securities Pledged
   2013  2012
   (in thousands)
Fixed maturity securities, available-for-sale $ 46,156 $ 37,533
Other trading account assets   287   -
Total securities pledged $ 46,443 $ 37,533
Reclassifications Out Of Accumulated Other Comprehensive Income
Reclassifications out of Accumulated Other Comprehensive Income (Loss)      
              
           
      Year Ended Year Ended Year Ended
      December 31, 2013 December 31, 2012 December 31, 2011
              
      (in thousands)
Amounts reclassified from AOCI (1)(2):         
Net unrealized investment gains (losses):         
 Cash flow hedges - Currency/Interest rate (3) $(95) $(101) $(85)
 Net unrealized investment gains (losses) on available-for-sale securities  8,900  23,488  76,476
  Total net unrealized investment gains (losses) (4)  8,805  23,387  76,391
              
    Total reclassifications for the period $8,805 $23,387 $76,391

_____________

  • 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 11 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 and future policy benefits.
Accumulated Other Comprehensive Income Loss Table
   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, 2010 $ - $ 190,871 $190,871
Change in component during period (2)   -  (30,160)  (30,160)
Balance, December 31, 2011 $ - $ 160,711 $ 160,711
Change in component during period (2)   7  (13,431)  (13,424)
Balance, December 31, 2012 $7 $147,280 $147,287
Change in other comprehensive income         
  before reclassifications    5  (108,769)  (108,764)
Amounts reclassified from AOCI    -  (8,805)  (8,805)
Income tax benefit (expense)   (2)  41,151  41,149
Balance, December 31, 2013 $10 $70,857 $70,867

_____________

  • Includes cash flow hedges of ($4) million, ($3) million and ($1) million as of December 31, 2013, 2012 and 2011, respectively.
  • Net of taxes.